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94th Congress 
2d Session 



COMMITTEE PRINT 



ADMINISTRATION OF EXPORT 
CONTROLS /<S77^ 



PREPARED FOR THEv ^ * 

COMMITTEE 0%^^ ff ' 
INTERNATIONAL RELATE 

BY THE 

ECONOMICS DIVISION, 

CONGRESSIONAL RESEARCH SERVICE, 

LIBRARY OF CONGRESS 









w 




JUNE 7. 197G 



72-380 O 



U.S. GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1976 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/admionofOOIibr 



CONTEXTS 



Page 

Introduction 1 

Statutory purposes and basic provisions 3 

Implementing regulations and guidelines 6 

The making of implementing policy and regulations 6 

Technical advisory committees 7 

Licensing of exports 9 

Table of general licenses., 12 

National security controls 11 

Commodity control list and country groups 15 

Restrictiveness of controls 16 

Criteria for issuance of validated licenses 19 

Communist countries — security considerations 19 

Free-world countries — diversion considerations 20 

Temporary export controls 22 

Reexport controls 24 

Technical data controls 26 

Foreign policy controls 29 

Country-oriented controls 29 

Commodity-oriented controls 30 

Short-supply controls 33 

Implementation of the export control system 36 

Organizational structure of the* export control system 36 

Office of Export Administration and related agencies 36 

Office of Export Administration 36 

Operating Committee 37 

Deputy Assistant Secretary level informal working group. _ 37 

Advisory Committee on Export Control Policy (ACEP) 38 

Export Administration Review Board (EARB) 38 

The White House 38 

Department of Defense review authority 39 

Department of Agriculture authority over agricultural export 

controls 42 

International controls by the Coordinating Committee (COCOM)_ 43 

Economic Defense Advisory Committee (EDAC) 45 

Licensing procedure 46 

National security controls 46 

Licensing divisions 46 

Policy Planning Division 48 

Operating Committee 49 

COCOM 51 

Selected statistics 52 

Short supply controls 53 

Appeals from license denials 55 

Enforcement and sanctions 57 

Enforcement proceedings 58 

Interrogatories 58 

Charging letters 59 

Hearing Commissioner 59 

Hearings 59 

Director of the OEA 60 

Consent orders 60 

Criminal proceedings 60 

(V) 



VI 



Page 

Sanctions 61 

Letter of warning 61 

Denial of export privileges 61 

Civil penalty 64 

Appeals 64 

Criminal penalty 65 

Enforcement workload 65 

Appendix A. Export Administration Act of 1969, as amended 67 

Appendix B. Commodity control list (sample page) - 77 

Appendix C. Country groups , 78 

Appendix D. Office of Export Administration : organization and functions. 7i> 

Appendix E. Export Licenses Approved and Reexports Authorized 80 

Appendix E. Denial and Probation Orders (sample page) 82 

Appendix G. Sources 88 



ADMINISTRATION OF EXPORT CONTROLS UNDER THE JURISDICTION OF 

THE OFFICE OF EXPORT ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE 

A SURVEY OF POLICY AND OPERATIONS 



Intr oduction 

The current United States policy of controlling exports dates 
back to the early days of World War II when, in 1940, the President 
was given the authority to control or curtail exports of munitions 
and related items in the interest of national defense. Legislation 
enacted in the intervening years has expanded the scope of these 
controls both as to the range of items subject to controls and the 
purposes of controlling their exports. Export controls have been 
administered by a succession of agencies, but since 1947 the U.S. 
Department of Commerce has been the agency exercising the controls 
over the bulk of U.S. exports. Presently this function is administered 
by the Department's Office of Export Administration (OEA). 

Several other U.S. agencies have control over exports of 
certain commodities or categories of commodities which for specific 
reasons and under specific legislation fall within their jurisdiction 
rather than within that of the OEA. 

Exports of arms, ammunition, and implements of war and of related 
technical data, for example, are controlled by the Office of Munitions 
Control of the U.S. Department of State under the authority of section 
414 of the Mutual Security Act of 1954; exports of nuclear materials and 
facilities, and of nuclear technical data are controlled, respectively. 

(1) 



- 2 - 

by the Nuclear Regulatory Commission and the Energy Research and 
Development Administration under the Atomic Energy Act of 1954. 
These controls have been instituted for reasons of national security. 

Export controls based on other considerations (short supply. 
conservation, general public welfare, and regulation of public 
utilities) are administered by: (1) the Maritime Administration 
(U.S. Department of Commerce) over merchant ships under the Shipping 
Act, 1916; (2) the Department of the Treasury over bronze pennies 
under the Coinage Act of 1965; (3) the Federal Power Ccmmission 
over natural gas and electric energy under the Natural Gas Act and 
the Federal Power Act, respectively; (4) the Drug Enforcement Admini- 
stration (U.S. Department of Justice) over narcotics and dangerous 
drugs under the Controlled Substances Export and Import Act; and 
(5) the U.S. Fish and Wildlife Service (U.S. Department of the 
Interior), the National Marine Fisheries Service (U.S. Department 
of Commerce), and the U.S. Forest Service (U.S. Department of Agri- 
culture) over endangered and threatened species of animal and plant life 
primarily under the Endangered Species Act of 1973 and also under 
several other statutes of more limited scope. 

This paper will concern itself only with export control functions 
and operations exercised by the Office of Export Administration; 
even within that limitation, functions other than control of actual 
exports of goods and technical data (e.g., administration of the 
anti-Arab boycott provisions of the Export Administration Act, or 



- 3 - 

monitoring of exports of commodities potentially in domestic short 
supply) will not be dealt with. 

Statutory purposes and basic provisions 1_/ 

The law under which the OEA exercises its authority to control 

exports (and at the same time the principal U.S. export control 

statute) is the Export Administration Act of 1969, as amended 

(50 U.S.C. App. 2401 - 2413). In the declaration of policy, contained 

in section 3 of the Act (50 U.S.C. App. 2402), the Congress expresses 

a double purpose: 

(A) to encourage trade with all countries with which 
we have diplomatic or trading relations, except those 
countries with which such trade has been determined 
by the President to be against the national interest, 
and (B) to restrict the export of goods and technology 
which would make a significant contribution to the 
military potential of any other nation or nations 
which would prove detrimental to the national security 
of the United States. 

The policy of trade encouragement is a relatively recent facet 

of export control legislation; in fact, it was first enacted only 

in 1969 in response to the frequent complaints by the American 

business community that the export control legislation was overly 

— and unnecessarily — restrictive . 



1_/ It is not the intent of this section to provide a detailed 
resume of the entire Export Administration Act but merely to 
focus on the most important of the export control provisions 
The text of the Act appears in Appendix A. 



72-380 0-76-2 



- 4 - 

In the same section, the Congress further sets out three 

basic purposes for controlling exports by declaring that 

[i]t is the policy of the United States to use export 
controls (A) to the extent necessary to protect the 
domestic economy from the excessive drain of scarce 
materials and to reduce the serious inflationary impact 
of foreign demand, (B) to the extent necessary to fur- 
ther significantly the foreign policy of the United 
States and to fulfill its international responsibili- 
ties and (C) to the extent necessary to exercise the 
necessary vigilance over exports from the standpoint 
of their significance to the national security of the 
United States . 

These three purposes — and the resulting types — of export 
control are usually referred to as: short supply, foreign policy, 
and national security. An additional purpose of export controls 
was declared by the Congress in 1974, primarily as a reaction to 
the Arab petroleum embargo of 1973-1974. The declaration of policy, 
in paragraph (7) of section 3 of the Act, considers export controls 
also as a tool of last resort in inducing foreign countries to remove 
their restrictions on U.S. access to supplies they control where 
such restrictions would bring about U.S. shortages or inflationary 
pressures, or would be used to influence U.S. foreign policy. 

While the detailed implementation of the export control authority, 
conferred on the President and further delegated to the Secretary of 
Commerce, has traditionally been left to the discretion of the Executive 
export control legislation of recent years has contained more and more 
detailed directives as to the administration of the controls. Controls 
on exports of agricultural commodities, for example, are subject to 



- 5 - 

the approval by the Secretary of Agriculture; such approval, however, 
may not be given if the commodity in question is in domestic surplus, 
except when the President determines that controls are required 
on national security or foreign policy grounds (Sec. 4(f); 50 U.S.C. 
App . 2403(f)). In the interest of national security, the Secretary 
of Defense is given specific authority to review the proposed 
exports of all goods and technology in certain categories, determined 
by him as requiring such review, for the purpose of determining 
whether such exports would significantly increase the military capabi- 
lity of a "controlled" (i.e. communist) country (Sec. 4(h); 50 U.S.C. 
App. 2403(h)). 

In order to assure the broadest participation in the policy- 
making as well as administrative phases of export control, the statute 
provides for consultation at various levels with other U.S. agencies 
and with the interested branches of industry (Sec. 5; 50 U.S.C. 
App. 2404). 

Violations of the provisions of the Act or of any regulation, 
order, or license issued under the Act, are punishable by civil 
penalties, including administratively imposed fines, as well as 
criminal penalties, including fines and/or imprisonment. Criminal 
penalties are substantially higher for violations involving actual 
exports to communist countries and for repeated violations (Sec. 6; 
50 U.S.C. App. 2405). 



Implementing regulations and guidelines 

The making of implementing policy and regulations . 

The general policy and purpose as well as some additional 
procedural detail of export control, set out in the Export Admini- 
stration Act, are administered in practice through detailed policy 
and procedures spelled out in Export Administration Regulations 
(15 C.F.R. 368 - 399.2), promulgated by the Office of Export 
Administration. Although officially promulgated by the OEA as the 
agency responsible for export control, these regulations and addi- 
tional policy and administrative guidelines are as a rule a joint 
product of inputs from, and consultation among, a variety of sources 
concerned with the control of exports. The statute itself (sec. 5; 
50 U.S.C. App . 2404) requires that, in the process of establishing 
new policy guidelines and regulations or modifying the existing ones 
there be a broad participation of U.S. Government agencies and of 
the private industry sector. On the Government side, the technical 
expertise necessary for the formulation of guidelines comes both 
from agencies that are primarily interested in promoting exports (in 
view of the Act's declared policy of encouraging exports) as well as 
from those whose primary task it is to protect the national security 
or promote the foreign policy aims of the United States by, if need 
be, preventing or restrictng the exports of certain commodities or 
technical data. 



- 7 - 

Policy consultations among the U.S. Government agencies 
take place at various levels from staff to cabinet and may be 
done either in formally established working groups or in informal 
exchanges. A description of such interagency consultative forums 
which deal with questions of broader policy as well as — and more 
often — with decisions concerning individual export control cases, 
is included in the section on the Organizational structure of the 
export control system (see p. 36). 

Expertise and viewpoints of the private industry are injected 
into the export control policy making primarily through the various 
technical advisory committees . These committees, authorized by law 
(sec. 5(c); 50 U.S.C. App . 2404(c)) and appointed by the Secretary 
of Commerce for two-year periods, have been set up for the purpose 
of enabling the interested sectors of the American industry to 
exercise their advisory role in the administration of export controls 
At present, there are in existence seven such committees involving 
the following industries: computer peripherals, components and 
related test equipment; computer systems; electronic instrumentation; 
numerically controlled machine tools; semiconductor manufacturing 
and test equipment; semiconductors; and telecommunications equipment. 
The committees include, in addition to the representatives of the 
industry involved, also those of the Departments of Commerce, Defense 
and State, and, when appropriate, other U.S. agencies. 



The duty and function of the committees is to advise and 
assist any U.S. agency charged with the administration of export 
controls. The law requires that the committees be consulted in 
the field of their expertise with respect to questions involving 
technical matters, worldwide availability and actual utilization 
of production and technology, and licensing procedures which may 
affect the level of export controls applicable to the commodities 
or technical data within their purview. The committees are required 
to meet at least once every three months unless the chairman deter- 
mines, in consultation with other members, that a meeting is not 
necessary . 

Within this formal and informal institutional framework, the 
formulation of regulations and guidelines for export control often 
is a purposeful action intended to cope with a specific broader or 
narrower practical situation or achieve a new or different goal in 
response to a change in overall circumstances. On the other hand, 
new policy detail may develop as a result of identical repetitive 
ad hoc decisions in individual cases of the same nature which, in 
a sense, create a precedent for change in detailed policy. Thus, 
the impact of policy-making in the field of export controls can 
range from a major overhaul of export control regulations, or even 
statutes, to a minor decision that the severity of controls on the 
exportation of a certain commodity to a certain destination be reduced 



- 9 - 

The overwhelming bulk of the regulations involves political 
controls, i.e., controls imposed for reasons of either national 
security or foreign policy. National security controls overshadow 
by far foreign policy controls in their importance, scope and impact. 
Since there is, however, significant overlapping between these two 
types of control, the regulations make no formal distinction between 
them, and both are administered as a unit. Quarterly reports on 
U.S. export controls, however, do contain a separate section on 
foreign policy controls. In contrast, economic controls, i.e., 
short-supply controls, although considerably less extensive and 
having only a limited scope and impact, are the subject of separate 
specific regulations. 

Licensing of exports . 

The key tool of export controls administered by the Office of 
Export Administration is the system of export licensing. Every 
export of commodities or technical data from the United States to 
a foreign country must be licensed in some way. Exempt from this 
requirement are, in general, exports to Canada; but even in the 
case of Canada, some sensitive commodities and technical data are 
subject to the licensing requirement. 

While every exported commodity must be licensed, not every 
export requires the same type of license. Licenses fall basically 
into two categories: (1) general licenses, and (2) validated licenses 



- 10 - 

A general license is a general authorization by the Office of 
Export Administration to export a certain commodity or technical 
data to a certain destination without the necessity of applying 
for and obtaining a license document covering that specific trans- 
action. If the export transaction in question is permitted under 
a general license, it may take place without any paperwork other 
than the normal trade documentation. A validated license , on the 
other hand, is a document authorizing the export in question and 
issued by the OEA on the basis of a formal application by the 
exporter. The requirement to apply for a validated license applies, 
in the interest of national security or foreign policy, to certain 
commodities and technical data if they are to be exported to certain 
destinations. Some commodities are subject to the validated license 
requirement if exported to any country, others only if exported to 
certain (e.g., communist) countries. A validated license is issued 
if the transaction conforms to the criteria for the approval of 
validated licenses; otherwise, the application is denied. 

A validated license must also be obtained for the exportation 
of commodities subject to short supply controls. 

Exports of commodities or technical data that do not require 
a validated license take place under one of the several general 
licenses. Although the bulk of general license commodity exports 
takes place under general license G-DEST, a license applicable to 



- 11 - 

normal commercial exports, several other general licenses are 
in effect permitting the exportation of commodities or technical 
data in specific transactions of narrowly defined character or 
under special circumstances. A listing of all general licenses, 
indicating the types of circumstances and commodities they cover 
and the country groups for which they may be used, appears in 
Table 1. 

The table is intended to show the variety of general licenses 
rather than to provide definitive information on the applicability 
or inapplicability of each general license. Some general licenses 
which are shown in the table as normally applicable to exports to 
certain communist countries (mostly groups Q, W, and Y) in certain 
circumstances do not apply to such countries, and, vice versa, some 
general licenses normally inapplicable to exports to the same country 
groups may be used, in special circumstances, for exports to such 
countries. A detailed description of such exceptions appears in 
the pertinent regulations, contained in part 371 of the Export 
Administration Regulations. 

National security controls . 

Export controls imposed in the interest of national security, 
that is, controls over exports of strategic or high technology com- 
modities or technical data, take up by far the most extensive and 
complex portion of export administration regulations and functions. 



72-380 0-76-3 



- 12 



Table 1 



General Licenses 











Specific 


Genera! License 
Symbol 


Definition or Purpose 


Type of Commodities Covered 


Destina- 
tions 


Reference 

in Export 

Administration 

Regulations 


G-DEST 


Shipments of any commodity 


Commodities indicated by in- 


Destinations 


§ 371.3 




listed on the Commodity 


formation in Commodity 


indicated 






Control List to any desti- 


Control List. 


by infor- 






nation for which a vali- 




mation in 






dated license is not re- 




Commodity 






quired by the information 




Control 






in the Commodity Control 




List. 






List column titled "Vali- 










dated License Required for 










Country Groups Shown 










Below." 








GIT 


Intransit shipments 


All commodities, except cer- 
tain denned categories. 


Country 
Groups Q, 
T, V, and 
Cuba. 


§ 371.4 


GLV 


Shipments of limited value. . 


Commodities valued within 
the GLV dollar value limits 
specified in Commodity 
Control List. 


Country 
Groups Q, 
T, and V. 


§ 371.5 


BAGGAGE 


Shipments of personal and 


Commodities within defined 


All destina- 


§ 371.6(a) 




household effects, certain 


general categories not iden- 


tions. 






vehicles, and personally- 


tified by the code letter 








owned tools of trade. 


"A," "B," "C," or "M" fol- 
lowing the Export Control 
Commodity Number on 
Commodity Control List. 










Commodities within defined 


Country 


§ 371.6(a) 






general categories identi- 


Groups Q, 








fied by the code letter "A," 


T, and V. 








"B," "C," or "M" following 










the Export Control Com- 










modity Number on Com- 










modity Control List. 






GLD 


Shipments of dunnage, in 


Types of commodities used 


All destina- 


§ 371.8 




usual and reasonable quan- 


for dunnage. 


tions ex- 






tities. 




cept Coun- 
try Group 
Z (exclud- 
ing Cuba). 




SHIP STORES ... 


Shipments of ship stores for 


Food, bunker fuel, and other 


Ail destina- 


§371.9 




use on outgoing and im- 


commodities specified as 


tions ex- 






mediate return voyage of 


ship stores, with stated ex- 


cept Coun- 






vessels; necessary equip- 


ceptions. 


try Group 






ment and spare parts for 




Z. 






proper operation of depart- 










ing vessel. 








PLANE STORES.. 


Shipments of plane stores 


Food, fuel, and other com- 


All destina- 


§371.10 




for use on outgoing and 


modities specified as plane 


tions ex- 






immediate return trip of 


stores, with stated excep- 


cept Coun- 






aircraft; necessary equip- 


tions. 


try Group 






ment and spare parts for 




Z (exclud- 






proper operation of de- 




ing Cuba). 






parting plane. 









13 



General Liceni 
Symbol 



Definition or Purpose 



Type of Commodities Covered 



Specific 
Reference 
in Export 

Administration 
Regulation! 



CREW 



RCS 



GUS 



GLC 



GTF-US 



GLR 



GIFT 



Shipments by members of 
crew of usual and reason- 
able kinds and quantities 
of personal and household 
effects under prescribed 
conditions. 



Shipments to Canadian and 

U.S. vessels, planes, and 

airline installations or 
agents located abroad. 

Shipments to members of 
U.S. Armed Services and 
civilian personnel of U.S. 
government for personal 
use. Shipments to U.S. gov- 
ernment agencies for offi- 
cial use. 

Shipments of commercial ve- 
hicles operated by private 
or common carriers or cer- 
tain commercial airlines be- 
tween the U.S. and other 
countries. 



Shipments of commodities 
imported for display at ex- 
hibitions or trade fairs. 



Shipments of commodities re- 
turned to countries from 
which imported. Shipments 
of commodities returned to 
the country of manufac- 
ture or, the country from 
which imported for repair 
or overhaul. Shipment for 
replacement of defective or 
unacceptable commodities. 

Shipments of gift parcels 
from individual donors to 
individuals or to religious, 
charitable, or educational 
organizations for use of 
donee or donee's immediate 
family. 



Clothes, adornments, medi- 
cines, toiletries, food, sou- 
venirs, games, hand tools, 
and similar personal ef- 
fects; furniture, household 
effects, and household fur- 
nishings; and their con- 
tainers. 

Food, fuel, and other com- 
modities needed for use by 
or on such carriers. 

Commodities within defined 
categories. 



Civil aircraft. 



Trucks, buses, trailers, rail- 
road rolling stock and 
other commercial vehicles. 

Commodities imported for 
display at exhibitions or 
trade fairs, under stated 
conditions. 

Specified types of commodi- 
ties. 



Commodities not identified by 
the code letter "A," "B," 
"C," or "M" following the 
Export Control Commodity 
Number on Commodity 
Control List, up to a total 
of $100 in one parcel, ordi- 
narily sent as gifts; such 
as food, clothing, medicines, 
toiletries, and drugs, with 
stated exceptions. 



All destina- 
tions ex- 
cept Coun- 
try Group 
Z. 



C o u n t T y 
Groups Q, 
S, T, V, W, 
and Cuba. 

All destina- 
tions. 



Country 
Groups Q, 
T, V, W, 
and Cuba. 



Country 
Groups Q, 
T, V, and 
W. 

All destina- 
tions ex- 
cept Coun- 
try Groups 
S and Z. 

Country 
Groups Q, 
T, and V. 



§371.11 



All destina- 
tions ex- 
cept Coun- 
try Group 
Z (exclud- 
ing Cuba). 



§ 371.12 



§371.13 



§ 371.14(b) 



§ 371.14(c) 



§371.15 



§371.17 



371.18 



u 











Specific 


General License 
Symbol 


Definition or Purpose 


Type of Commodities Covered 


Destina- 
tions 


Reference 

in Export 

Administration 

Regulations 


GATS 


Authorizes departure from 


Civil aircraft of foreign reg- 


Country 


§ 371.19(a) 




U.S. under its own power 


istry. 


Groups Q, 






of civil aircraft on tem- 




T, and V, 






porary sojourn. 




and Cuba. 








Civil aircraft of U. S. regis- 


Country 


§ 371.19(b) 






try. 


Groups Q, 
T, and V. 




GMS 


Shipments of commodities 
sold by the U. S. Depart- 


All commodities. 


Country 
Groups T 






§371.20 




ment of Defense to a for- 




and V. 






eign government under the 










provisions of the Mutual 










Security Act of 1954, P.L. 










665, 83rd Congress. 








GTDA 


Shipments of generally avail- 


Technical data generally 


All destina- 






able technical data. 


available to the public, 
scientific and educational 
data, and certain data con- 
tained in an application for 
foreign filing of a patent. 


tions. 


§ 379.3 


GTDR 


Shipments of restricted tech- 
nical data. 


Technical data not exportable 
under General License 


Country 
Groups T 






§ 379.4 






GTDA but exportable sub- 


and V. 








ject to specified restrictions. 






GTE 


Temporary exports for use 
abroad and return to 


Specified types of commodi- 
ties. 


Country 


§ 371.22(b) 




Groups T 






United States of certain 




and V. 






commodities. 


Specified types of commodi- 
ties not identified by the 
code letter "A," "B," "C," 
or "M" following the Ex- 
port Control Commodity 
Number on Commodity 
Control List. 


Country 
Groups Q, 
W, and Y. 


§ 371.22(c) 



- 15 - 

This is not surprising in view of the vital importance and varied 
aspects of this area of national interest. 

In addition to administering the controls over exports of commo- 
dities and technical data directly from the United States, the 
Office of Export Administration also wields control over: (1) re- 
exports of U.S. origin commodities and technical data from one 
foreign country to another foreign country, (2) incorporation 
of U.S. -origin parts, components, and other commodities in a 
foreign country into endproducts intended for export, and (3) in 
some instances, foreign-produced direct products of U.S. -origin 
technology. These controls do not extend to exports by foreign 
subsidiaries, branches, or affiliates of U.S. firms merely because 
of such affiliation; the U.S. does not, under the Export Administra- 
tion Act, claim export control jurisdiction over such exports if 
they are wholly of foreign manufacture, and contain no U.S. materials 
nor are based on restricted U.S. technology. 

Commodity control list and country groups . - The key regulation 
for the administration of the system of licensing commodity exports 
is the Commodity Control List (CCL) (15 C.F.R. 399.1). 1/ The list 
consists of descriptions of individual commodities or larger com- 
modity groups, based on and arranged along the lines of Schedule B — 



1/ For a sample page of the CCL, see Appendix B. 



- 16 - 

Statistical classification of domestic and foreign commodities 
exported from the United States, the U.S. official classifica- 
tion of exports for statistical purposes. It also contains for 
each entry a letter-code indicating the country group or groups 
to which the commodity may not be exported without a validated 
license. There are seven such country groups, including all coun- 
tries of the world except Canada. 1/ 

Restrictiveness of controls . - The restr ic tiveness of controls 
varies from group to group. 2/ Arranged in order of increasing 
controls, the country groups would be ranked as follows: 



(1) Group T (countries of the Western Hemisphere, except 
Canada and Cuba) 

(2) Group V (countries not included in any other group, 
except Canada) 



(3) Group Q (Romania) 

(4) Group W (Poland) 



1/ A detailed list of country groups appears in Appendix C. 

2/ Exports to Canada, which is not included in any of the groups, 
are virtually unrestricted. 



17 - 



(5) Group Y (East European communist countries, except 
Poland, Romania, and Yugoslavia; Laos, Mongolia, 
People's Republic of China) 

(6) Group S (Rhodesia) 

(7) Group Z (North Korea, North and South Vietnam, 
Cambodia , Cuba) . 



Formal differences between some groups, characterized by the 
number of CCL entries that require a validated license and by 
applicability of other regulatory provisions, are often negligible. 
Groups T and V, for instance, do not differ in the number of com- 
modities requiring a validated license but in the fact that, for 
some commodities, the value limit under general license GLV I/, 
authorizing shipments of limited value, is higher for exports to 
group T than to group V. Similarly, groups W and Y are no different, 
at present, in respect to the validated license requirement for CCL 
entries, but group W qualifies for some specialized general licenses 
which do not apply to group Y. 

Exports to group Q require validated licenses for only one CCL 
entry fewer than to either group W or Y ; on the other hand, group Q 
does qualify for exports under the limited-value general license GLV 
(albeit not for as many items by far or as high a value limit as 
groups T or V) which is not applicable at all to exports to groups 
W or Y. 



1/ See Table 1 and Appendix 



- 18 - 

There are, likewise, only minor differences between controls on 
exports to group S and those to group Z. 

In practice, then, export controls are administered at three levels 
of roughly equivalent restrictiveness as measured by the geographic 
applicability of the validated license requirement: (1) controls on ex- 
ports of high-technology items to countries of the free world contained 
in groups T and V (which also includes Yugoslavia), (2) controls on high- 
technology exports to most communist countries (groups Q, W, and Y) , 
and (3) controls on virtually all exports 1/ to Rhodesia (group S) and 
to Cuba and some of the minor Far Eastern communist countries (group Z). 
In addition to the almost total commodity coverage of exports to 
groups S and Z by the validated license requirement, such licenses 
are as a rule not approved, resulting in a virtual embargo. 

Occasionally, a commodity, when exported to a certain country, is sub- 
ject to controls that are more restrictive than those applicable, in regard 
to the same commodity, to the rest of the countries in its country group. 

For example, exports of arms, ammunition, and military equipment must 
be approved by a validated license for export to South Africa and Namibia 
whereas such license is not required for the exports of the same items to 
other group V countries. Differentiations of this type, however, are 
usually motivated by foreign policy rather than national security 
considerations . 



1_/ Commodities to which the validated license requirement does not apply 
are: books, periodicals, and most other printed matter; talking-book 
phonograph records; news or documentary motion pictures and sound tracks 



- 19 - 

Criteria for issuance of validated licenses . - Despite sig- 
nificant differences in the validated license requirement between 
exports to the free world (groups T and V) and those to the com- 
munist countries (groups Q, W, Y, and especially Z), even a cursory 
glance at the CCL shows that a large number of entries which 
require a validated license for exports to Eastern European com- 
munist countries also require such license for exports to the free 
world; the purpose of the validated license requirement, however, 
differs in either case. Exports to communist countries are evaluated 
and licensed according to criteria focused primarily on the intrinsic 
and/or relative contribution they might make to the military potential 
of the importing country to the detriment of the U.S. national 
security; exports to the free world countries, on the other hand, 
are controlled primarily for the purpose of assuring that the 
commodity in question will not be diverted to an unauthorized 
country of destination. 

In the process of evaluating each application for a validated 
license for export to a communist country a number of criteria are 
taken into consideration before a decision is made to approve or 
disapprove such license. Some of the more important considerations are 



(1) Is the commodity designed for military purposes? Is the 
intrinsic nature of the commodity or data such as to make 
it of significant use to the military? Is it currently 
used importantly by the military establishments in the West? 
In the country for which it is destined? 



20 - 



(2) If the item has both military and civilian uses, is the 
intended end-use peaceful in nature? Is the prospective 
foreign end-user engaged in peaceful or military-oriented 
work? 

(3) Does the item incorporate advanced or unique technology 
of strategic significance that could be extracted? 

(4) Would the item promote the military-industrial base of 
the country of destination? Is there a shortage of the 
item in the area of destination that affects its military 
potential? 

(5) Are the quantities and types of equipment normal for the 
proposed use? 

(6) Is the equipment an integral part of a larger package and 
therefore unlikely to be used for other than the stated 
purpose? 

(7) Are comparable commodities or data available to the country 
of destination outside the U.S.? If COCOM controlled, are 
they available outside the COCOM countries? 

(8) Would significant economic/commercial benefits flow to the 
the U.S. from consummation of the transaction? 



As far as controls on U.S. exports to country groups T and V JV 
are concerned, the validated license requirement exists primarily for 
the purpose of preventing diversion or transshipment of such exports 
to unauthorized destinations. It ought to be mentioned, however, that 
while the most important function of ant idiversion provisions, indeed, 
is one of preventing the flow of U.S. -origin goods and technology 
from the free-world countries to the communist countries, they apply 



1/ Although controls on groups T and V are treated here within the 

context of national security export controls and would also appear 
to be in such a category as judged by their ultimate function, 
the OEA considers them of the foreign policy variety. 



- 21 - 

as well to exports from any country that is subject to less restric- 
tive export controls to one more severely controlled (e.g., exports 
from countries in groups Q, W, or Y to those in groups S and Z) . 

Antidiversion controls (15 C.F.R. 375) are implemented through 
the requirement that applications for validated licenses be accom- 
panied: (1) by a certification by the ultimate consignee that the 
commodity in question will not be transshipped to an unauthorized 
destination and that the foreign consignee or purchaser is fully 
aware of his responsibilities for the representations made to the 
Office of Export Administration and for the disposition of the 
licensed commodities only in those foreign countries where their 
disposition has been specifically authorized, or (2) by a certificate 
issued by the government of the consignee's country in which that 
government undertakes to exercise legal control over the disposition 
of the commodities covered. 

Applications for U.S. exports of high-technology commodities 
that are controlled also internationally through the COCOM system _1/, 
to any COCOM member (except Canada) and to Austria and Hong Kong, 
generally (there are exemptions and exceptions) must be accompanied 
by an International Import Certificate issued by the government of 
the country of destination; other high-technology exports to the 
same countries require a Statement by Ultimate Consignee and Purchaser 



1/ More information on COCOM appears on p. 43 



- 22 - 

an official form of the OEA. The same Statement must accompany 
applications for all exports subject to the validated license 
requirement to all non-COCOM destinations except country group T, 
Switzerland, and Yugoslavia. High-technology exports to the latter 
two countries are covered by import certificates issued by the 
country's authorities (Swiss Blue Import Certificate and Yugoslav 
End-Use Certificate). Exports to group T countries (Western Hemi- 
sphere less Canada and Cuba) do not require such certification. 

Exports under validated licenses to countries participating 
in the International Certificate procedure — regardless of whether 
such exports themselves require an IC or merely a Statement — may 
also be subject on a selective basis to a verification of their 
final destination through a Delivery Verification Certificate (DV). 
Such certificate is issued by the government of the importer's 
country after the export has taken place and the commodities have 
either entered the export control jurisdiction of the recipient 
country or been otherwise accounted for by the importer to his 
government . 

Temporary export controls . - In the context of export controls, 
temporary exports refer to exports of commodities intended for tempor- 
ary use abroad and prompt return to the United States, in any event no 
later than one year after their exportation date. Certain temporary 
exports are authorized under general license GTE (15 C.F.R. 371.22). 
Some of the types of exports that may be made under this general liceni 



- 23 - 

comprise, in general: (1) commodities of usual and reasonable kinds 
and in usual and reasonable quantities that a U.S. exporter or his 
representative needs for his use abroad in an undertaking approved 
by the OEA, (2) commodities for exhibition and demonstration, but 
only in country groups T or V, and (3) commodities to be repaired, 
tested, inspected, or calibrated abroad. Excepted from this rule 
and requiring validated licensing are commodities related to nuclear 
weapons, explosive devices, or testing, commodities for surreptitious 
interception of communications, and an array of sensitive commodities, 
listed individually in the regulations. 

In addition, only those commodities that may be exported in 
general trade under license G-DEST to country groups T and V may be 
temporarily exported under GTE to European communist countries. 
General license GTE does not apply to any temporary exports to groups 
S or Z. 

Even exports that may be made under GTE must be registered with 
the OEA; the exporter must also certify that he will comply in full 
with all provisions and requirements of general license GTE. 

In view of the substantive difference in the end-use of a 
temporary export and a normal commercial export, the criteria for 
granting validated license for the former are somewhat laxer than 
for the latter, and licenses easier to obtain. Nevertheless, validated 
licenses normally are not approved for temporary exports for the purpose 
of exhibiting or demonstrating sophisticated commodities in countries 



- 24 - 

to which commercial export of the same commodities would not 
normally be approved. 

Reexport controls . - Controls on exports of commodities 
have, thus far, been discussed almost exclusively within the con- 
text of direct exports from the United States. As has already 
been mentioned, the U.S. exercises jurisdiction also over exports 
of certain commodities of U.S. origin, or containing U.S. technology, 
from foreign countries to other foreign countries. As a general 
rule, such reexports are governed by provisions very similar to 
those controlling direct U.S. exports: items exportable to a foreign 
country directly from the United States under a general license 
may also be exported to the same country from another foreign country 
without a specific authorization from the OEA ; commodities requiring 
a validated license for exportation from the United States, must be 
specifically authorized by the OEA in writing also for exports from 
a foreign country (including Canada). 

Commodities of U.S. origin may be reexported in whole or in part 
from their authorized country of ultimate destination without a speci- 
fic authorization if they may be exported to the new country of destina- 
tion directly from the United States under any of several general licenses 
(G-DEST, GLV, SHIP STORES, or PLANE STORES); reexports from Canada 
may take place if they would be allowed under any general license 
from the United States; reexports are also generally allowed in certain 



-25- 

other circumstances , included in the regulations on permissive 
reexports (15 C.F.R. 374.2). All other reexports must be specifi- 
cally authorized by the OEA; they are also subject to the destina- 
tion control procedure unless their destination is any country 
in group T or group V, except Liechtenstein, Singapore, South 
Africa, South-West Africa (Namibia), Sweden, Switzerland, or 
Yugoslavia . 

U.S. control over commodities exported from the United States 
and incorporated as parts , components , and materials in foreign- 
made end-products is similar to control over reexports. Prior 
written authorization is not required from the Office of Export 
Administration for the incorporation abroad of U.S. -origin parts 
and components in a foreign-made end-product that will be exported 
to another country, provided that either the U.S. -origin parts and 
components, or the end-product if it were of United States origin, 
could be exported from the United States to the new country of 
destination under general license G-DEST (15 C.F.R. 376.12). 

U.S. controls also apply to certain sensitive foreign-produced 
direct products of U.S. -origin technical data when such products 
are to be exported to any communist country (Groups Q, W, Y, and Z) 
(15 C.F.R. 379.8, .4(e), and .5(e)(1) or (2)). All such exports re- 
quire a specific authorization by the Office of Export Administration 



- 26 - 

Technical data controls . - Virtually all of the discussion of 
export controls thus far has been focused on exports of commodities. 
Controls are, however, also applied to exports of technical data, 
and one part of Export Administration Regulations (15 C.F.R. 379) 
deals specifically with this aspect of export controls. These 
controls apply only to technical data that have not been officially 
assigned a security classification; the export of classified tech- 
nical data is controlled, depending on their nature, by the Office 
of Munitions Control or by the U.S. Energy Research and Development 
Administration . 

Controls over exports of technical data administered by the Office 
of Export Administration apply to information of any kind that can 
be used or adapted for use in the design, production, manufacture, 
utilization, or reconstruction of national security sensitive 
articles or materials. Data may be in the form of a model or a proto- 
type, of a blueprint, an operating manual, or even a technical service. 
Models and prototypes are controlled also as commodities, and their 
exports are subject to the more restrictive control requirements 
embodied in the Commodity Control List. 

As in the case of commodities, certain narrowly defined types 
of technical data require a validated export license to all destina- 
tions, including the exports to Canada which are normally not subject 
to any kind of licensing requirement, general or validated (15 C.F.R. 
379.4(c)). Other data may be subject either to a general or a 



- 27 - 

validated license. There are in effect two general licenses authorizing 
the exports of technical data: license GTDA, dealing with technical 
data exportable to all destinations, and license GTDR, dealing with 
technical data the exports of which are in some way restricted. 

General license GTDA (15 C.F.R. 379.3) authorizes the export 
to all destinations: (1) of technical data that have been made gener- 
ally available through media generally accessible to the public, 
(2) of scientific or educational information that is not directly 
and significantly related to design, production, or utilization of 
industrial processes, and (3) of data contained in an application 
for the foreign filing of a patent application, filed in accordance 
with the regular procedure of the U.S. Patent Office. 

General license GTDR (15 C.F.R. 379.4) authorizes, under specific 
circumstances, export of some data that are not exportable under GTDA. 
No data may be exported under this license to country groups S or Z. 
GTDR does apply, however, to exports to a country in groups Q, W, or 
Y: (1) of manuals, instruction sheets, or blueprints directly 
related to a commodity exported to the same consignee under a general 
or validated license provided such data are related only to the 
installation, maintenance, or operation of the commodity and not to 
its production or construction, and (2) of technical data supporting 
a bid or offer to sell related to a commodity that is not on the 
U.S. Munitions List or COCOM controlled, provided the data will not 
disclose the detailed design, production, or the means of reconstruction 



72-380 O - 76 - 5 



- 28 - 

of the item in question or its product (15 C.F.R. 379.4(b)). A 
validated license is required for the export to all destinations, 
except Canada, of technical data related to a number of highly 
sensitive commodities (mostly machinery and transport and electronic 
equipment of special types) unless such data are of the two types 
mentioned earlier as being exportable to groups Q, W, or Y under 
general license GTDR. On the other hand, technical data related 
to commodities not included in this special list or data not barred 
from export to all destinations may be exported to countries in 
groups T or V under the general license GTDR (15 C.F.R. 379.4(d)). 

In the event that technical data relating to a number of 
categories of materials and equipment, specifically listed in the 
regulations (15 C.F.R. 379.4(e)( 1) ( iii)) , are to be exported under 
general license GTDR, the transaction nevertheless may not take 
place until the exporter has received from the importer written 
assurances that such data or the direct product thereof will not 
be shipped to country group Q, W, Y, or Z (15 C.F.R. 379.4(e)(1)). 

As is the case with commodities, technical data are subject 
also to reexport controls . Regulations controlling the reexport 
of technical data (15 C.F.R. 379.8) prohibit, in general, the 
unauthorized reexport of technical data imported from the United 
States from the authorized country of destination or their export 
from the United States with the knowledge that the data will be 
reexported from the country of the original ultimate destination. 



- 29 - 

Exempt from this rule and permitted under one or the other general 
license (GTDA or GTDR) are exports of technical data to any new 
country of destination if such data could be exported to such 
country directly from the United States under the respective general 
license. In all other cases, a reexport of technical data must 
be specifically authorized in writing by the Office of Export 
Administration. 

Foreign policy controls . 

Export controls imposed for reasons of foreign policy fall into 
two categories: (1) controls applicable primarily to certain 
countries, and (2) controls applicable primarily to certain types of 
commodities. In the first category are controls imposed on exports 
to North Korea, North Vietnam, South Vietnam, Cambodia, and Cuba. 
While exports of U.S. commodities to other Communist countries 
require in the interest of national security a validated license, 
issued — or denied — by the Office of Export Administration, only to 
the extent that they are of strategic nature or contain high techno- 
logy, such a distinction is not made in the case of exports to the 
above listed five countries, virtually all of which are subject to 
the validated license procedure (15 C.F.R. 385.1). Similarly, 
virtually all exports to Rhodesia must be approved by a validated 
license as part of the embargo imposed by the United States on trade 
with Rhodesia pursuant to section 5 of the United Nations Participation 



- 30 - 

Act of 1945 (22 U.S.C. 287c) and in conformity with the United 
Nations Security Council Resolutions of 1965, 1966, and 1968, 
calling for economic sanctions against Rhodesia (15 C.F.R. 285.3). 
In both above listed cases, validated licenses are as a rule denied. 

Country-oriented foreign policy controls of limited commodity 
scope apply in a number of other instances. There is, for example, 
in effect a U.S. embargo, pursuant to a U.N. Security Council 
Resolution of 1963, implemented through a validated license require- 
ment with licenses as a rule disapproved, on all shipments of arms, 
munitions, military equipment, and materials for their manufacture 
(insofar as these items are under the jurisdiction of the Department 
of Commerce rather than the Department of State) to the Republic of 
South Africa and to Namibia (South West Africa) (15 C.F.R. 385.4(a)). 
Also subject to a validated license requirement are exports to the 
same two countries of all aircraft, aircraft engines, and certain 
communication and navigational equipment (some of which may normally 
be exported to country group V under general license G-DEST) and 
of fingerprint analyzers. 

Exports of aircraft and communication and navigational equipment 
some of which are exportable to group V countries under G-DEST, are 
also subject to a validated license requirement for export to Algeria 
Egypt, Iraq, Libya, Syria, and People's Democratic Republic of Yemen. 

Commodity-oriented foreign-policy export controls, consisting of 
a validated license requirement, are being applied in regard to crime 
control and detection instruments and equipment to all Communist 



- 31 - 

countries except Yugoslavia; one type of commodity in this category, 
voice print identification or analysis equipment, moreover, requires 
a validated license for shipments to all foreign destinations except 
Canada. This type of control was established at the request of the 
U.S. Department of State because the equipment is considered to have 
prominent use in the suppression of human rights (15 C.F.R. 376.14; 
Export Administration Report, 1st quarter 1975, p. 6). In addition, 
the export of any electronic, mechanical, or other device primarily 
useful for surreptitious interception of wire or oral communications 
requires a validated license for all foreign destinations, including 
Canada (15 C.F.R. 376.13) . 

Also within the area of foreign policy controls are special 
controls imposed on the exports of certain commodities with nuclear 
implications. Commodities and technical data specifically designed 
for the use in designing, developing, or fabricating nuclear weapons 
or explosive devices, or in devising, carrying out, or evaluating 
nuclear weapons tests or nuclear explosions are generally under the 
export licensing jurisdiction of the U.S. Office of Munitions Control 
or, if they are not weapons, of the Energy Research and Development 
Administration or the Nuclear Regulatory Commission; the Office of 
Export Administration, on the other hand, does have control juris- 
diction over exports of similar exports that have not been specifically 
designed or modified for any of the above listed uses, but which the 
exporter knows or has reason to believe, will be used for such purposes, 



- 32 - 

Similarly, the OEA has control jurisdiction over exports of any 
commodity which is in normal commercial use for other purposes but 
which has been specifically designed or modified for uses related 
to the testing of nuclear weapons or explosions. If such commodity is 
destined to a country which is not a signatory of the Limited Nuclear 
Test Ban Treaty of August 5, 1963, a validated license is required. 
This requirement applies technically to exports to all destinations, 
including Canada (15 C.F.R. 378.1). 

A further foreign policy control in the nuclear field, exercised 
by the OEA, is the validated export license requirement involving some 
two dozen types of commodities designed for specific use in or with 
nuclear reactors for peaceful purposes. Exports of such commodities 
to non-nuclear weapon countries that are not signatories of the Nuclear 
Non-Proliferation Treaty of July 1, 1968 may not be approved unless 
the country of destination provides the U.S. Government with a certi- 
fication that it will abide by certain specific restrictions on and 
safeguards in the use of the commodities in question (15 C.F.R. 378.5). 

Foreign policy controls are most often established at the request 
of the State Department or the Energy Research and Development Admini- 
stration/Nuclear Regulatory Commission and are, consequently, admini- 
stered in consultation primarily with those agencies. Occasionally, 
other agencies such as the Department of Agriculture or of the Treasury 
may also be involved. 



- 33 - 

A further foreign policy-motivated function of the Office of 
Export Administration is the implementation of the anti-boycott 
provisions of the Export Administration Act and regulations. This 
function, however, falls outside the scope of this paper and will 
not be dealt with in further detail. 

Short supply controls . 

Short supply controls were a major consideration in the early 
administration of the U.S. export controls program during World War II 
and in its aftermath when they were used primarily for allocating 
scarce resources, available in the United States, among our wartime 
Allies and, after the war, among the many nations of the world 
dependent on the United States for their recovery, without jeopar- 
dizing domestic requirements for the same resources. Once the 
need for such wholesale allocations had disappeared, short supply 
controls were used sporadically, in connection with only selected 
few commodities, and generally for limited time periods. 

In the recent past, there occurred one major instance of the use 
of short supply controls when in July, August and September of 1973 
quantitative restrictions were in effect on the exportation of over 40 
agricultural products. In addition, at various times during the last 
half-decade, short supply export controls were in effect on copper, 
nickel, ferrous scrap, walnut logs, timber, lumber, and veneer, and 
on cattle hides. Controls imposed in December 1973 on the exportation 






- 34 - 

of petroleum and petroleum products and some related fuels are the 
only short supply controls still in effect. 

The administration of short supply export controls is governed 
by sec. 377 of the Export Administration Regulations (15 C.F.R. 377), 
based on the requirements of the policy expressed in sec. 3(2)(A) 
of the Act. This statute has a twofold purpose: (1) to protect 
the domestic economy from the excessive drain of scarce materials, 
and (2) to reduce the serious inflationary impact of foreign demand 
for U.S. made goods. Prior to the enactment of the Export Administra- 
tion Amendments of 1974 (P.L. 93-500; 88 Stat. 1552), the authority 
to use short-supply export controls as an anti-inflationary tool 
was somewhat less broad in that it provided for the establishment 
of such controls only in cases of inflationary threat due to abnormal 
foreign demand. 

The manner of implementing short supply controls may vary 
depending on the nature and severity of the shortage. At one 
extreme, it may involve a total embargo on exports (i.e., no licenses 
at all are issued); at the other, it may consist merely of a require- 
ment that applications for validated licenses must be filed for all 
exports of the controlled commodity, but no applications are denied. 

Generally, short-supply regulations envisage a system of quanti- 
tative limitations (quotas), imposed either globally or on a country 
basis. Within these limits, licenses are issued primarily on the 
basis of each exporter's participation in the exports of the controlled 



- 35 - 

commodity during a recent base period; a portion of the quota, 
however, remains reserved for exporters who do not have a history 
of participation in this trade. This method of licensing assures 
historical exporters continued equitable access to export trade 
without excluding from it any newcomers, and helps maintain a normal, 
if perhaps reduced, pattern of export trade during periods of domestic 
short supply (15 C.F.R. 377.1 and .2). 

Present short supply controls on petroleum and related products 
are implemented for most of the short-supply controlled commodities 
through quantitative quotas set for each importing country; exporters' 
participation within theoe quotas is regulated through the issuance 
of licenses. The few products that are not subject to country quotas 
are controlled through global licensing. 

A procedure closely related to the control of actual exports is 
export monitoring, usually accomplished through a requirement that 
export shipments of the monitored commodity be periodically reported 
to the Office of Export Administration. Monitoring of exports of 
short-supply sensitive commodities has been a practice of some historical 
standing; presently it is, moreover, specifically directed 1/ by 
sec. 4(c) of the Act (50 U.S.C. App . 2403(c)), as added by the 1974 



1/ The statute specifically exempts the Secretary of Commerce (in 
practice, Office of Export Administration) from the duty of 
monitoring agricultural products that are already subject to a 
similar reporting requirement, administered by the U.S. Department 
of Agriculture . 



72-380 O - 76 - 6 



- 36 - 

amendments. Under this mandate, the Office of Export Administration 
at present monitors on a monthly basis export shipments and unfilled 
export contracts for eleven types of fertilizer (15 C.F.R. 376.5). 

Implementation of the export control system . 

Organizational structure of the export control system . 

Office of Export Administration and related agencies . - The primary 
responsibility for the administration of the export control system 
and the implementation of statutory and regulatory provisions and 
other operational guidelines is in the hands of the Office of Export 
Administration by virtue of the authority, vested by the Export 
Administration Act in the Secretary of Commerce and successively 
delegated to that Office. 

After a recent reorganization 1/, the OEA at present consists 
of the Office of the Director and seven operating divisions: Policy 
Planning; Operations; Compliance; Short Supply; and three licensing 
divisions: Computer; Capital Goods and Production Materials; 
and Electronic Equipment. A description of their functions appears 
in Appendix D. One of the purposes of the March 1976 reorganization 
was the abolition of a separate Technical Data Division and the incor- 
poration of its functions into the licensing divisions. 



1/ Federal Register, v. 41, no. 55, March 19, 1976, p. 11592 



- 37 - 

In addition to the OEA, there are several levels of interagency 
bodies : 

(1) The Operating Committee (PC) , composed of senior staff 
members of the Departments of Commerce, Defense, State, and Treasury, 
of the National Aeronautics and Space Administration, and the Energy 
Research and Development Administration as regular members, and the 
Central Intelligence Agency as a regular adviser. The OC is chaired 
by the Department of Commerce representative and meets weekly as the 
principal interagency formal body through which information, advice, 
and policy positions from other agencies concerned with export controls 
are sought and obtained by the Department of Commerce as part of the 
export control policy making procedure, and which actively participates 
in the review and approval of applications for validated licenses 

for significant individual transactions requiring more than routine 
review. 

(2) An informal working group at the Deputy Assistant Secretary 
level , established recently to deal with policy issues related to 
export license applications and other matters that cannot be resolved 
at the OC level. The objective of this informal group is to achieve 
a more rapid resolution of interagency differences than could be 
obtained at the next higher formal level (ACEP) where individual items 
are considered according to a strict schedule which at times may result 
in delays which can be avoided if the case is resolved in an informal 



- 38 - 

(3) The Advisory Committee on Export Policy (ACEP) , a formal 
interagency committee at the Assistant Secretary level which is the 
parent body of the OC and on which the same agencies are represented. 
The ACEP deals primarily with interagency policy differences that 
cannot be resolved at a lower level and, consequently, meets less 
frequently than the OC . 

(4) The cabinet level Export Administration Review Board (EARB) , 
consists of the Secretary of Commerce, as its chairman, and the 
Secretaries of Defense, State, and Treasury (in his capacity as the 
Chairman of the East-West Trade Board). Other cabinet members are 
included in the Board's deliberations whenever matters of policy 
directly connected with their concerns are under consideration. The 
Board meets infrequently, two or three times a year, and deals with 
interagency differences in particular export license matters, involving 
questions of national security or other major policy issues that cannot 
be resolved at lower levels and are referred to the Board by its 
chairman either on his own initiative or upon request of another 
member or the head of any U.S. agency that has an interest in the 
matter. The Board is an advisory body and its conclusions are trans- 
mitted in the form of recommendations to the Secretary of Commerce to 
assist him in the administration of export controls. 

(5) Highly sensitive problems that cannot be resolved even at 
the EARB level are referred for final resolution to the White House. 



- 39 - 

In addition to this vertical hierarchy of policy making and 
license review, specifically assigned important roles in the admini- 
stration of export controls are played by two U.S. agencies and 
one international body. 

Department of Defense review authority . - The review by the 
Secretary of Defense, usually referred to as the DOD review, is 
mandated by section 4(h) of the Export Administraton Act (50 U.S.C. 
App . 2403(h)), added by the 1974 amendment. The statute requires 
that any request for a validated license to export to a "controlled" 
country a commodity which the Secretary of Defense had determined, 
in consultation with the administering agency, as warranting such 
review, be reviewed by the Secretary of Defense in order to determine 
whether its exportation would significantly increase the importing 
country's military capability. Upon such review, the Secretary 
of Defense may recommend to the President to disapprove such expor- 
tation. If the transaction is disapproved by the President, a 
validated export license may not be issued for it. In the event 
of Presidential approval, a report to that effect must be submitted 
to the Congress. 

The "controlled" countries to which this provision applies are 
those defined as communist countries in section 620(f) of the Foreign 
Assistance Act of 1961, as amended (22 U.S.C. 2370(f)). The list 
includes also Yugoslavia which the Export Administration Regulations 



- 40 - 

do not include among the countries of the communist bloc. 

The fundamental criterion of the basis on which the DOD makes 
its recommendations as to the approval or disapproval of a high- 
technology export is the one stated in the Act: Will the export 
of the goods or technology in question significantly increase the 
military capability of a controlled country to the detriment of the 
national security of the United States? The goal of this review 
and of the DOD embargo on certain items is not to prevent communist 
countries permanently from acquiring any particular military capability; 
the pursuit of such a goal would be unrealistic. Nevertheless, 
through judicious use of export controls the acquisition of such 
capability by communist countries can be retarded. 

While the statute authorizes the DOD to review a rather large 
number of exported commodities, the review has been made as simple 
as possible. Long before the enactment of the 1974 statute, th^e 
Office of Export Administration had in effect a number of arrangements 
with the Department of Defense for the processing of certain classes 
of proposed exports without direct consultation with and clearance 
by the DOD in each transaction. These arrangements — some 63 in all — 
consisted of delegations of authority by the DOD to the OEA whereby 
the classes of items involved, although subject to DOD review on a 
case by case basis, could be licensed for export without direct DOD 
involvement in view of their general nature which the past experience 
showed would normally allow them to be approved for export by the DOD. 



- 41 - 

if reviewed individually. After the enactment of section 4(h), 
the DOD suspended temporarily all such delegations of authority and 
examined all applications for exports to controlled countries while 
conducting an intensive review of the previous arrangements to 
determine whether they could be renewed in the light of current 
circumstances. The review showed that almost all of the delegations 
of authority could be restored, thereby saving the DOD much admini- 
strative work and avoiding unnecessary delays in the approval of 
licenses by the OEA . 

A statute similar to section 4(h) , but now for all practical 
purposes superseded by the latter, is section 709 of the Department 
of Defense Appropriation Authorization Act, 1975, which authorizes 
the Secretary of Defense to review and recommend disapproval of a 
validated export license for "any goods, technology, and industrial 
techniques which have been developed in whole or in part as a direct 
or indirect result of research and development program or procure- 
ment programs financed in whole or in part with funds authorized 
by. . . any . . .Act authorizing funds for the Department of Defense," 
when such exports are made to a "controlled country" destination 
and would significantly increase the country's military capability. 
The Secretary's recommendation is transmitted to the President for 
his action. If the President disagrees with the Secretary's 
recommendation and wishes to approve the export, he must submit to 
Congress a statement to that effect. The President's proposed 



- 42 - 

approval of the export becomes operative after 60 days of continuous 
session of the Congress unless the Congress disapproves it in the 
meantime by a concurrent resolution. 

The statute also requires quarterly reports to the Congress 
by the Secretary of Defense of the implementation of the review 
provision. 

The major points in which this statute differs from section 
4(h) of the Export Administraton Act are the following: 

(1) This statute applies only to goods or technology that have 
been developed or procured with DOD funds; sec. 4(h) applies 
to "any proposed export of goods or technology." 

(2) While both statutes require the President to submit a 
report to the Congress in the event that he disagrees 
with the Secretary's recommendation to disapprove an 
export, sec. 709 provides for Congressional reversal of 
the President's decision, and sec. 4(h) does not. 

(3) For the purpose of sec. 4(h), "controlled countries" are 
those that are listed in 22 U.S.C. 2370(f), i.e., all 
communist countries, including Yugoslavia; sec. 709 lists 
individually only seven East European communist countries 
but can apply also to "such other countries as may be 
designated by the Secretary of Defense." 

(4) Under sec. 709, the Secretary of Defense is required to 
submit quarterly reports to Congress on the implementation 
of his review authority; no such requirement exists under 
sec. 4(h) . 

Department of Agriculture authority over agricultural export 
controls . - Section 4(f) of the Export Administration Act (50 U.S.C. 
App. 2403(f)) prohibits the Office of Export Administration from 
placing export controls on any agricultural commodity without the 



- 43 - 

approval of the Secretary of Agriculture. The Secretary himself is, 
in turn, prohibited from approving such controls if they would apply 
to a commodity which is in excess of the U.S. domestic requirements 
(an agricultural surplus commodity), except when the President 
determines that the controls are necessary in the interest of 
national security or foreign policy. 

International controls by the Coordinating Committee (COCOM) . - 
The Coordinating Committee was established in 1950 as a voluntary 
multinational organization for the purpose of controlling, in the 
interest of their mutual security, strategic exports from its 
member countries to the communist bloc. COCOM consists of Belgium, 
Canada, Denmark, France, the Federal Republic of Germany, Italy, 
Japan, Luxembourg, the Netherlands, Norway, Portugal, Turkey, the 
United Kingdom, and the United States. COCOM and its senior body, 
the Consultative Group, were created informally, out of practical 
need, and are not based on a formal treaty or executive agreement. 

The continued participation of the United States in COCOM is 
based primarily on sec. 301 of the Mutual Defense Assistance Control 
Act of 1951 ("Battle Act")(22 U.S.C. 1613). The members have no 
obligation to participate in COCOM or to abide by its recommendations. 
These recommendations, arrived at in confidential proceedings, become 
effective only as they are carried out by each member country through 
its own export controls. The implementation of COCOM 1 s recommendations 



- 44 - 

by its members, however, is to a large extent assured by the 
basic rule of COCOM's decisions, namely, that there must be unani- 
mous agreement on all COCOM final recommendations. Thus, a COCOM 
decision means in effect that each member country has decided to 
exercise the same controls under its own laws. 

The key documents for the administration of COCOM controls 
are lists of embargoed and controlled items. The so-called Inter- 
national List I, covering strategic equipment and materials of non- 
military and non-nuclear nature, contains 105 items, the Inter- 
national Munitions List contains 21 items, and the International 
Atomic Energy List, 23 items. As in the U.S. Commodity Control 
List, an "item" in an international list may in fact represent 
a large category of commodities, and a simple comparison of the 
number of items on an international list with that on a member 
country's domestic list can be deceptive. Nevertheless, there is 
substantial general identity between the international munitions and 
atomic energy lists on the one hand and the U.S. Munitions List and 
the list of nuclear items controlled by the ERDA and/or NRC on the 
other. List I commodities can be recognized in the CCL by their 
being identified by a code letter A immediately following the export 
control commodity number 1/ ; these commodities require, within the 
U.S. export control system, a validated license for all destinations 



1/ See sample page of the CCL in Appendix B. 



- 45 - 

except Canada and are subject to the IC/DV procedure. 1/ The COCOM 
embargoed commodities represent the level of control that all COCOM 
members have accepted as their minimum level; in addition to these 
items, each country may — and the United States does — control a 
broader array of products. 2/ 

Although the COCOM list is in its intent an embargo list, excep- 
tions may be made for individual shipments, approved for export under 
the export control procedure of a member country, if such country 
presents a request for an exception through its delegate to COCOM. 
Requests for exceptions are also subject to the unanimity rule of 
COCOM, and a proposed export may take place only if all members 
agree that it does not constitute a security risk. 

In its own turn, the United States participates in the approval 
of COCOM exception requests, submitted by other member countries, 
through the Economic Defense Advisory Committee (EDAC) , U.S. inter- 
agency committee at the Assistant Secretary level with membership 
identical to that of the ACEP, but chaired by the Assistant Secretary 
of State for Economic and Business Affairs. 3/ If foreign requests 



1/ See p. 21-22 above. 



2J CCL items followed by code letter B, for example, require, like 
those coded A, a validated license for export to all destinations 
except Canada; they are, however, not subject to the IC/DV pro- 
cedure which applies only to COCOM controlled commodities. 

3/ EDAC with its subordinated working units is the U.S. Government 
body charged with the coordination and conduct of the U.S. parti- 
cipation in COCOM in general. 



- 46 - 

for COCOM exceptions involve commodities which contain U.S. com- 
ponents subject to a U.S. validated license requirement, the request 
is also — and first — considered by the ACEP. These so-called dual- 
licensing cases occasionally result in disagreements between ACEP 
and EDAC when the U.S. component is licensed by ACEP, but the 
foreign country exception request is denied by EDAC. 

Licensing procedure . 

National Security controls . 1_/ - The Office of Export Adminis- 
tration receives on a daily average approximately 200 applications 
for validated licenses falling within the scope of national security 
controls. Some 90 to 95 percent of these applications cover high 
technology items the bulk of which are for exports to the free 
world rather than to communist destinations. After having been 
registered and entered into the Office's computer system by the 
Operations Division, an application is assigned to a technician 
in the appropriate licensing division . The licensing technician 
reviews the application, concentrating on the function and uses 
of the commodity involved, its level of sophistication, and any 
other applicable criteria and guidelines. Routine applications 
for exports to the free world are approved at this level and 
issued to the applicant. Applications involving exports to 



1_/ The same procedure applies essentially to foreign policy controls 
insofar as they do not involve an outright embargo. 



— 47 - 

communist countries, or foreign-policy controlled exports to the 
free world and Yugoslavia as well as cases requiring further 
review or documentation are retained within the system. 

Additional documentation or information may be needed because 
the licensing officer may not be sufficiently familiar with the 
end-user; such information is usually provided by the Export Infor- 
mation Division of the Bureau of International Commerce. Also 
at this stage, background information may be sought from intelligence 
sources or through informal consultations with technicians in 
other agencies. If the information or documentation appended to 
the application by the applicant is insufficient for a proper 
review, additional information is obtained directly from the appli- 
cant, or else the application is returned to the applicant without action 
In the latter case, the application may be resubmitted accompanied 
by the required information. 1/ Based on all the information gathered 
at this stage, the technical specifications of the commodity and 
the transaction in general are evaluated against the guidelines 
for the purpose of determining the extent of further review re- 
quired. With the exception of a limited number of applications 
for exports to communist countries which are approved at this 



\J Applications for validated licenses are at times, although less 
frequently, returned without action to the applicant at later 
stages of review, especially in cases where the commodity involved 
may not be licensable in its current condition but could be 
approved for export if certain modifications which might be 
acceptable to the end-user are made and the application is re- 
filed. 



- 48 - 

point in the licensing division, applications, accompanied by the 
documentation and an analysis by the licensing technician, are 
then forwarded to the Policy Planning Division for further action. 

The Policy Planning Division is the locus where the inter- 
agency review, including the statutory DOD review, of an application 
takes place. If it is determined upon review of a case that a 
validated license can be issued simply on the basis of the various 
guidelines established for the OEA by an advisory agency for approval 
or rejection of applications, covering a wide range of commodities, 
such approval is given; if, on the other hand, consultation with 
one or more other agencies appears necessary, the case is referred 
to the interested agencies. If at all possible, and particularly 
in cases in which only individual agencies may have any interest, 
the case is resolved through informal referrals to and consultations 
with the agencies concerned. This is done in order to avoid the 
need for referring the case to a higher level for formal review 
which usually takes more time and more paperwork. While the docu- 
mentation for these informal referrals is not as extensive as for 
an application formally reviewed by the Operating Committee, it 
still must contain a memorandum setting forth the details of the 
transaction, policy considerations, previous approvals, end-use 
and end-user information, and extensive technical information. If 
an advisory agency has problems with the transaction, it can re- 
quest formal review by the Operating Committee. 



- 49 - 

When a case is of interest primarily to the DOD , rather than 
to any other agency, and cannot be resolved through informal con- 
sultation, a formal referral under section 4(h) is made to DOD 
alone; in unresolved or otherwise significant cases of interest 
to several agencies, however, the application is forwarded for 
formal review by the Operating Committee , and the DOD review take; 
place as a part of the proceedings of that committee. 

Although the process of informal review has shortened what 
otherwise would have become a really prolonged processing time 
and has relieved some of the burden on the committee structure in 
several commodity areas, a substantial number of individual appli- 
cations for high technology items are still reviewed by the 
Operating Committee. 

A substantial part of the delay brought about by a referral 
to the Operating Committee is caused by the heavy workload in- 
volved in documenting applications that must be reviewed by all 
the agencies participating in the Committee's deliberations. 
This documentation includes, as a minimum, the following: 

(1) a technical description of the commodities or data 
involved and the intended end use ; 

(2) an evaluation of the strategic significance of the pro- 
posed transaction; 

(3) information on the foreign availability of comparable 
commodities or data; 



- 50 - 

(4) the licensing history of past applications for like 
or similar commodities or data; and 

(5) a recommendation for approval or denial, and the rationale 
supporting the recommendation. 

The gathering of additional facts, some of them hard to come 
by, and often consultations on technical aspects with experts within 
and outside the Government may further delay the preparation of the 
documentation required by the OC. 

Once the documentation on any given transaction is completed, 
the case is put before the Operating Committee agencies and their 
advice sought. This advice and the OC chairman's recommendations 
are forwarded to the Director of the Office of Export Administration 
for his decision or, in some instances, for referral to the Director 
of the Bureau of East-West Trade for his decision. 

Disagreements among the advisory agencies participating in 
the deliberations are referred for review and final advisory reso- 
lution to higher formal or informal bodies: the informal working 
group at the Deputy Assistant Secretary level, the formal ACEP at the 
Assistant Secretary level, the cabinet level EARB , and, if need 
be, the President who may act with advice from the National Security 
Council (NSC) and the Council on International Economic Policy 
(CIEP). Referrals to higher levels are progressively less numerous, 



- 51 - 

to the Presidential level virtually nonexistent, according to the 
OEA officials. 1/ 

At whatever level an agreement as to the approval of a license 
application is reached, cases involving exports of COCOM embargoed 
items must also be referred to that body for its approval. Inasmuch 
as most high-technology items approved for export by the United 
States are also on the COCOM list, a substantial proportion of 
U. S. -approved licenses must be forwarded, accompanied by all the 
required documentation, through the U.S. delegate to COCOM in the 
form of an exception request to be approved by other COCOM members. 

In accordance with COCOM procedure, the information forwarded 
from the United States must be transcribed into COCOM format, 
translated into French, and distributed to the delegates of other 
member-nations. These delegates, in turn, submit the exception 
proposal to their governments which review the request through a 
procedure comparable to the U.S. review of COCOM exception requests 
by the Economic Defense Advisory Board. 2/ The views and comments 
of member-governments are returned to their respective delegates 
and discussed in COCOM. This process obviously takes time, 



1_/ The General Accounting Office in its summary statement of report 
to the Congress on "The Government's Role In East-West Trade — 
Problems And Issues", dated Feb. 4, 1976, however, states that 
continued departmental disagreements requiring Presidential 
decisions "have occurred frequently in the past," a statement 
which appears at variance with the information provided by the OEA. 

2/ See p. 45. 



- 52 - 

normally lasting approximately four weeks before the OEA is 
informed that license can be issued. Occasionally, however, one 
or more country delegates raise questions or objections during 
the COCOM deliberations. These must then be communicated to the 
OEA, answers prepared and sent back, and the case scheduled for 
a new COCOM discussion. In such circumstances, the delay may 
last several months before the COCOM approval is determined. 

Upon the final approval of the application, a validated 
license for transaction is issued to the applicant by the 
Issuance Section of the Operations Division. A list of approved 
validated licenses is published daily by the Office of Export 
Administration as required by the Export Administration Regu- 
lations (sec. 390.4). A sample of the daily list of Export 
Licenses Approved and Reexports Authorized is attached as 
Appendix E. The list contains a general description of the 
commodity or technical data governed by each license, the total 
value of the commodity, and the country of destination. 

In order to give a general view of the workload of the OEA 
as far as national security licensing is concerned, the following 
statistical data are presented. 

(1) In calendar year 1975, the OEA received a total of 
52,107 applications for validated license for exports to all 
destinations subject to national security controls, and acted 
on 52,031 of them. Out of the total of applications acted upon, 



- 53 - 

45,523 (87.5 percent) were approved, 341 (0.7 percent) were 
denied, and 6,167 (11.8 percent) were returned without action. 

(2) During the same year, OEA acted upon 3,451 applications 
for exports to communist countries (6.6 percent of all applications 
acted upon) by either approving or disapproving them. 1,325 cases 
(38.4 percent of all communist country cases) were resolved within 
OEA alone under delegated authorities or guidelines, 995 cases 

(28.8 percent) were referred to various advisory agencies for informal 
consultations, 686 (19.9 percent) were referred to DOD for its 
formal review, and 445 (12.9 percent) were sent to the Operating 
Committee. Of the last category, 272 were approved, 125 denied, 
and 48 were still pending at the year-end. In addition, 83 applica- 
tions for exports to Yugoslavia, subject to section 4(h) review, 
were processed under the DOD delegations of authority and guidelines 
while 416 were sent to DOD for formal review and were all approved. 

(3) U.S. exception requests sent to COCOM represent the 
largest single — and growing — share of COCOM 1 s exception workload. 
In the years 1972 through 1975, the United States sent COCOM, 
respectively, 506, 519, 567, and 789 exception requests; these 
represented respectively, 36, 38, 41, and 44 percent of all 
exception requests received by COCOM. 

Short supply controls. 

All short supply controls are administered by the Short Supply 
Division of the OEA. The purpose of short supply controls being 



- 54 - 

the control of all exports of the controlled commodity, no exports 
may take place under general license G-DEST and every export ship- 
ment must be approved by the granting of a validated license. 

In the recent years, when short supply export controls were in 
effect, two basic mechanisms were used for the limitation of exports 
of controlled commodities. One, already mentioned briefly on page 35 
and presently in effect in regard to petroleum and related products, 
is based on a definite global export quota, established each quarter 
and within it, for certain commodities, country quotas: these are 
allocated to each exporter on the basis of his historical partici- 
pation in the export trade of each commodity, with provision also 
made for any newcomers to such trade. The other mechanism, which 
was in use, for example, during the period 1973 when short supply 
controls were in effect on exports of over forty agricultural 
commodities, does not use a definite quantitative limit (quota) 
and, within it, allocations to exporters, but rather establishes 
an upper limit for exports by each individual exporter. This 
limit is determined as a percentage of the quantities under contract 
by the exporter as of a certain date — the date on which the 
controls were put into effect or even an earlier date — for foreign 
delivery but as yet undelivered. Thus, during the controls on 
agricultural products in 1973, each exporter was at first permitted 
to export only 40 percent of the soybean oil-cake and meal con- 
tracted for but still undelivered as of June 13, 1973 (two weeks 



- 55 - 

before the controls became effective), 50 percent of such soybean 
orders, and 100 percent of cottonseed, and cottonseed oil-cake 
and meal order. Somewhat later, the remaining commodities were 
approved for export under validated licenses to the extent of 
100 percent of unfilled order. 

The issuance of validated licenses in such circumstances is 
obviously based on strictly quantitative criteria: validated licenses 
are issued until the quantitative limits set by the licensing regula- 
tion are reached; after that point, no more licenses are issued except 
in cases of hardship. Each hardship case must be documented and is 
reviewed separately on its own merits by an interagency hardship com- 
mittee. Agencies represented on hardship committtees are usually 
those that, in addition to the Department of Commerce, have a major 
interest in short supply export controls in general (e.g., Department 
of State, Council on International Economic Policy) or specifically 
in that type of commodity (e.g., Department of Agriculture for 
farm products, Federal Energy Administration for petroleum). 

Appeals from license denials . 

In the rare event that an application for a validated license 
is denied (less than one percent of applications filed in 1975 were 
denied), the applicant has the right to appeal 1/ to the Assistant 



\J Regulations governing appeals from denials of licenses or other 
administrative action, except sanctions, are contained in part 
389 of the Export Administration Regulations. 



- 56 - 

Secretary for Domestic and International Business, U.S. Department 
of Commerce, if such denial causes him exceptional and unreasonable 
hardship, 1/ or improperly discriminates against him. The appeal 
must contain in writing a complete statement of all the pertinent 
facts and circumstances, and state fully and precisely why the 
appellant believes it should be granted. Other evidence, 
supporting the appellant's position, should accompany the appeal. 

The Appeals Advisor to the Assistant Secretary forwards the 
case to the Appeals Coordinator in the OEA where the case and any 
new information supplied by the appellant are examined by the 
technical staff. Their findings are reviewed by the Coordinator, 
and additional advice may be sought from other agencies. The 
OEA's findings, documents, and comments are returned to the Appeals 
Advisor where the unclassified portion of the file is made availabli 
to the appellant, with the opportunity to respond within 30 days. 
After that, the Appeals Advisor submits his recommendations to 
the Assistant Secretary. In his decision the Assistant Secretary 
may reject the appeal or grant it in whole or in part. His 
decision is final, and is issued to the appellant in writing. If 
the appeal is rejected, the appellant is also fully informed of 
the reasons for the rejection to the extent permitted by national 
security considerations. 



1/ Procedures for hardship relief are specifically included in 
the Act (sec. 4A; 50 U.S.C. App . 2403a) 



- 57 



Enforcement and sanctions . 

In its section 6 (50 U.S.C. App. 2405), the Export Administra- 
tion Act provides for administrative sanctions as well as criminal 
penalties for violations of any provision of the Act or of any 
regulation, order, or license issued thereunder. Regulations govern- 
ing enforcement and administrative sanctions and proceedings are 
contained in parts 387 and 388. 

Enforcement of export control provisions and all matters per- 
taining to sanctions are handled in the OEA by the Compliance Division . 
The division develops information regarding areas of possible viola- 
tions, investigates them, and prepares cases for whatever action 
appears appropriate. In addition to the obvious types of direct 
violations of export control provisions, such as unauthorized exports 
or reexports, prohibited in Part 387.6 of the Regulations, other 
export control connected acts of less direct nature are also prohibited 
such as: causing, aiding, and abetting a violation (387.2); soli- 
citation of, or attempt or conspiracy to bring about a violation 
(387.3); acting with knowledge of a violation (387.4); misrepresenta- 
tion and concealment of facts (387.5); unauthorized use or alteration 
of export control documents (387.8); trafficking in or advertising 
export control documents (387.9); and transactions with persons 
known to be subject to denial orders (387.10). The Division also 
enforces compliance with the antiboycott provisions of the Act. 



- 58 - 

Enforcement proceedings . - Actual or possible violations 
of the export control provisions, most frequently unauthorized 
exports or reexports, 1/ come to the attention of the Compliance 
Division in several ways: a violation may be disclosed by the 
contravening firm itself, or reported by another firm, possibly 
a competitor; officials of the U.S. Customs Service or U.S. Postal 
Service as well as the division's own staff may uncover it by 
inspecting outbound cargo for licensing requirements; occasionally, 
it is uncovered by Foreign Service personnel located in foreign 
countries; U.S. investigative agencies, such as the F.B.I, or the 
C.I. A., become aware of violations or may even be asked to investi- 
gate situations in which a violation might be likely to occur to 
determine whether one might in fact have occurred. 

After the Compliance Division becomes aware of a possible 
violation, it may send an interrogatory to the suspected firm to 
obtain additional information. If the firm replies, the information 
is used to determine whether administrative proceedings should be 
initiated by serving on the firm a charging letter. If the firm 
fails to respond to the interrogatory, it is considered in default 



1/ Information received from the Compliance Division indicates that 
violations related to exports tend to be more of a technical 
nature (e.g., unwitting unlicensed export of a commodity subject 
to validated licensing, or export under an expired license) whil< 
violations related to reexports tend to be more of a substantive 
nature (e.g., diversion of COCOM-controlled commodities to un- 
authorized destinations). 



- 59 - 

and the charging letter is served based on the available information. 
In the charging letter are alleged the essential known facts consti- 
tuting the specific violation, and notice is given that, in the event 
the respondent is found to have committed the alleged violation, 
specific administrative sanctions or civil penalties may be imposed. 
If he fails to reply, he is deemed in default and the allegations 
are considered to have been admitted; the case then is referred to 
a Hearing Commissioner , designated by the Director of the Bureau 
of East-West Trade, for his consideration. If the respondent does 
answer the charging letter, the response must contain, in addition 
to a specific admission or denial of each allegation, detailed infor- 
mation and evidence in support of his defense or in mitigation of 
the charges. At the same time, he may also request an oral hearing 
before the Hearing Commissioner. Recourse to oral hearings is not 
available to suspected violators who fail to answer the charges. 

Hearings are to be conducted by the Hearing Commissioner in a 
fair and impartial manner and, while the rules of evidence prevailing 
in the courts do not apply, all evidence relevant and material to 
the inquiry must be considered and the respondent may be represented 
by legal counsel. On the basis of all information gathered through 
the hearing, the Hearing Commissioner prepares a written report 
containing all findings of fact, including whether or not a violation 
had taken place, and his recommendations. The report and all the 
records of the hearing are then transmitted to the Director of the OEA 



- 60 - 

for action. 

If the Hearing Commissioner finds that the evidence does not 
support a conclusion that a violation had been committed, the 
Director of the OEA enters an order dismissing the charges. If, 
on the other hand, the Hearing Commissioner concludes that a viola- 
tion has occurred, his recommendation is only advisory and the dis- 
position is determined by the Director who may issue an order imposing 
such administrative sanctions as he deems appropriate. 

The hearing may be avoided if, after the transmission of a 
charging letter, the respondent and the OEA agree to submit to the 
Hearing Commissioner a proposal for the issuance of a consent order . 
If the Commissioner, upon reviewing the facts and, if need be, conducting 
informal conferences with the parties and informally receiving addi- 
tional evidence, disapproves the proposal, the case proceeds to hearing. 
If he approves the proposal, he submits the facts and his recommenda- 
tions to the OEA Director who, in turn, may reject the proposal, in 
which event the case goes to hearing, or he may accept it and issue 
an appropriate order. 

In serious cases of violation of export control provisions, 
which in the evaluation of the Compliance Division warrant the 
institution of a criminal proceeding , all the pertinent facts, 
evidence, and recommendations are prepared by the Division and for- 
warded to the General Counsel of the U.S. Department of Commerce 
for review and transmission to the U.S. Department of Justice for 



- 61 - 

possible criminal prosecution. The existence of an administrative 
proceeding, or the imposition of an administrative sanction or 
civil penalty resulting from one, does not preclude the institution 
of criminal prosecution based on the same violation. 

Sanctions. - The principal sanctions applied to violators of 
export control provisions are those imposed by the Director of the 
OEA as a result of the administrative proceedings before the Hearing 
Commissioner. As the charging letter is required by regulation to 
indicate, these sanctions include: (1) general denial of export 
privileges, (2) total exclusion from practice before the Bureau of 
East-West Trade, U.S. Department of Commerce, and (3) monetary civil 
penalty. Each of these penalties may be imposed either alone 
or in addition to any of the other two. In less serious cases 
(e.g. , in minor technical violations) , a letter of warning may 
be sent to the violator. 

The most frequently used sanction that is more severe than a 
letter of warning is the denial of export privileges . Such a denial 
prohibits the violator from participating directly or indirectly, in 
any capacity, in any transaction involving commodities or technical 
data exported or to be exported from the United States, or which are 
otherwise subject to Export Administration Regulations (e.g., reexports 
from foreign countries). The ban on such participation specifically, 



- 62 - 

but not exclusively, refers to applying for, preparing, filing, 
obtaining, or using any export license, and to any commercial, 
financial, or similar activity connected with any commodity or 
technical data (388.1(a)(2)). A denial order may be issued for a 
specific time period or, more often, for " duration " , which means 
that it remains in effect for the duration of export controls, that 
is , as long as the present statute or any successor legislation 
that provides for carryover remains in effect. Denial orders may 
also be issued with a probationary period provision. During such 
period, usually following a period of actual denial, the denial 
of privileges is held in abeyance but may be reinstated upon an 
application by the Gompliance Division for an order revoking the 
probation, a report and recommendation thereon by the Hearing Commis- 
sioner, and final determination by the OEA Director. The probation 
period may last for "duration" or until a specified date. 

Denial of export privileges of more limited scope or duration 
may be imposed in a number of circumstances other than pursuant to 
a formal finding by the Hearing Commissioner. A charging letter , 
for example, may deny to the respondent the privilege of participating 
in any manner in any U.S. export transaction pursuant to a validated 
license; it may also, somewhat less restr ic t ively , suspend or revoke 
any validated licenses outstanding to the benefit of the respondent, 
without denying him any other export privileges (388.11(a)). 

An order for an "indefinite" denial of export privileges may be 



- 63 - 

issued by the OEA Director against a person who refuses or fails to 
furnish to the OEA, in the course of an investigation or other pro- 
ceeding, responsive answers to interrogatories or to other requests 
for information, documents, or other tangible things that have a 
bearing upon the investigation. An "indefinite" denial remains in 
effect until the person subject to it responds to the request or 
gives adequate reason for his failure or refusal to respond (388.15). 

Denial orders may also be " temporary ". Such denial orders may 
be issued against a person who is under investigation, or against 
whom administrative or judicial proceedings are pending, for violation 
of export control provisions, if such denial is found reasonably 
necessary to protect the public interest pending final disposition 
of the investigation or proceedings. They are issued only for such 
limited time, ordinarily not over 30 days, as is necessary to complete 
the case, but may be extended if necessary. Indefinite and temporary 
denial orders may be issued only if the Hearing Commissioner, upon 
application by the Compliance Division and his review of the case, 
approves such action (388.11(b), .15). 

An order issued upon default may be vacated by having the default 
set aside upon the respondent's application and the Hearing Commis- 
sioner's consideration of the case and recommendation (388.4(b)). 
Similarly, temporary denials of export privileges contained in a 
charging letter or an order as well as indefinite denial orders may 
be vacated or modified upon the filing of an appropriate motion with 



- 64 - 

the Commissioner and after his consideration and recommendation 
(388.11(c), .15); similar procedure applies also to objections to, 
or requests to set aside, revocations of probation (388.16(b)). 
Any case may be reopened by the Commissioner upon a written request 
by the respondent and submission of relevant and material evidence 
which was not known or obtainable at the time of the original pro- 
ceeding. The reopened proceeding is conducted in the same manner 
as the original one (388.12). 

Civil penalties may also be imposed by the Director of the OEA, 
as authorized by sec. 6(c) of the Act (50 U.S.C. App . 2405(c)). 
These consist of monetary fines not in excess of $1,000 for each 
violation . 

After the disposition of a case following a formal hearing, 
the respondent may appeal from a denial of export privileges or 
privileges of practice, or from civil penalty on any of three 
grounds: (1) that the findings of violation are not supported by 
substantial evidence, (2) that prejudicial error of law was commit- 
ted, or (3) that the provisions of the order are arbitrary, capri- 
cious, or an abuse of discretion. Appeals may also be filed from 
a denial upon default, or temporary or indefinite denial, but only 
if relief had been first requested through the appropriate procedure, 
and denied. Appeals are handled by the Appeals Board of the U.S. 
Department of Commerce primarily on the basis of the record containing 
all the relevant documents, but may also include an informal oral 



- 65 - 

presentation. In the Appeals Board's decision which is final, the 
appeal may be granted or denied, in whole or in part (388.13). 

In criminal case s, referred to the U.S. Department of Justice 
for prosecution, penalties for violations are prescribed by the 
statute. A knowing violator of any provision of the Act or any 
regulation, license, or order issued thereunder is punishable, 
for the first offense, with a fine of up to $10,000, or with 
imprisonment of up to one year, or both. For the second or any 
subsequent offense, the fine may be as high as $20,000 or three 
times the value of the exports involved, whichever is greater, and 
the imprisonment may be for as long as five years. For willful 
exportation of anything contrary to the export control provisions, 
with knowledge that the export will be used for the benefit of a 
communist nation, the penalty is $20,000 or five times the value 
of the export involved, whichever is greater, or up to five years 
imprisonment, or both (sec. 6(a) and (b) of the Act; 50 U.S.C. 
App. 2405(a) , (b)) . Imposition of penalties in a criminal proceeding 
affects in no way any administrative or civil sanctions that have 
been imposed on the defendant for the same violation. 

Enforcement workload . - The enforcement workload of the 
Compliance Division is fairly heavy. In 1975, the division had in 
process, overall, 210 preliminary investigations of which 126 were 
pending at the beginning of the year, and 84 were instituted during 



- 66 - 

the year; 50 cases were closed during the year with 160 remaining 
still pending at the year-end. The division also handled 251 full- 
scale investigations, of which 78 were carryovers from the previous 
year and 173 begun anew; 154 cases were closed and 97 still pending 
at end of the year. As a result of these cases, 385 warning letters 
were sent, 24 definite denial orders were issued, and civil penalties 
amounting to $29,500 were levied in 6 cases. 1/ In one instance, 
the case was referred to the U.S. Department of Justice for possible 
prosecution . 

Orders either imposing, or modifying or revoking, denial or 
probation are published in the Federal Register, and the Export 
Control Regulations (Supplement 1 to Part 388). A sample page appears 
as Appendix F. A very recent tabulation of denial or probation orders 
issued since inception of the program and currently still in effect 
shows a total of 645 such orders, affecting firms in 35 foreign 
countries and 9 States. Of these, 288 are effective for duration, 
175 indefinite, 123 probationary, 30 expiring on a specific date, 
and 29 until further notice. 



1_/ Civil penalties amounting to $4,000 were also levied in 4 cases 
of noncompliance with the antiboycott provisions. 



- 67 



Appendix A. Export Administration Act, as amended 



AN ACT 

To provide for continuation of authority for 
regulation of exports 

Be it enacted by the Senate and House of 
Representatives of the United States of 
America in Congress assembled, 

SHORT TITLE 

Section 1. This Act may be cited as the 
"Export Administration Act of 1969." 

FINDINGS 

Sec. 2. The Congress makes the following 
findings : 

(1) The availability of certain materials 
at home and abroad varies so that the quan- 
tity and composition of U.S. exports and 
their distribution among importing countries 
may affect the welfare of the domestic econ- 
omy and may have an important bearing 
upon fulfillment of the foreign policy of the 
United States. 

(2) The unrestricted export of materials, 
information, and technology without regard 
to whether they make a significant contribu- 
tion to the military potential of any other na- 
tion or nations may adversely affect the 
national security of the United States. 

(3) The unwarranted restriction of ex- 
ports from the United States has a serious 
adverse effect on our balance of payments, 
particularly when export restrictions applied 
by the United States are more extensive than 
export restrictions imposed by countries 
with which the United States has defense 
treaty commitments. 

(4) The uncertainty of policy toward cer- 
tain categories of exports has curtailed the 
efforts of American business in those cate- 
gories to the detriment of the overall attempt 
to improve the trade balance of the United 
States. 



(5) Unreasonable restrictions on access 
to world supplies can cause worldwide po- 
litical and economic instability, interfere 
with free international trade, and retard the 
growth and development of nations. 

DECLARATION OF POLICY 

Sec. 3. The Congress makes the following 
declarations: 

(1) It is the policy of the United States 
both (A) to encourage trade with all coun- 
tries with which we have diplomatic or trad- 
ing relations, except those countries with 
which such trade has been determined by the 
President to be against the national interest, 
and (B) to restrict the export of goods and 
technology which would make a significant 
contribution to tfye military potential of any 
other nation or nations which would prove 
detrimental to the national security of the 
United States. 

(2) It is the policy of the United States to 
use export controls (A) to the extent neces- 
sary to protect the domestic economy from 
the excessive drain of scarce materials and 
to reduce the serious inflationary impact of 
foreign demand, (B) to the extent necessary 
to further significantly the foreign policy of 
the United States and to fulfill its interna- 
tional responsibilities, and (C) to the extent 
necessary to exercise the necessary vigilance 
over exports from the standpoint of their 
significance to the national security of the 
United States. 

(3) It is the policy of the United States 

(A) to formulate, reformulate, and apply any 
necessary controls to the maximum extent 
possible in cooperation with all nations, and 

(B) to formulate a unified trade control 
policy to be observed by all such nations. 

(4) It is the policy of the United States to 
use its economic resources and trade potential 



68 



to further the sound growth and stability of 
its economy as well as to further its national 
security and foreign policy objectives. 

(5) It is the policy of the United States 
(A) to oppose restrictive trade practices or 
boycotts fostered or imposed by foreign coun- 
tries against other countries friendly to the 
United States, (B) to encourage and request 
domestic concerns engaged in the export of 
articles, materials, supplies, or information, 
to refuse to take any action, including the 
furnishing of information or the signing 
of agreements, which has the effect of fur- 
thering or supporting the restrictive trade 
practices or boycotts fostered or imposed by 
any foreign country against another country 
friendly to the United States, and (C) to 
foster international cooperation and the de- 
velopment of international rules and institu- 
tions to assure reasonable access to world 
supplies. 

(6) It is the policy of the United States 
that the desirability of subjecting, or con- 
tinuing to subject, particular articles, ma- 
terials, or supplies, including technical data 
or other information, to United States export 
controls should be subjected to review by and 
consultation with representatives of appro- 
priate United States Government agencies 
and qualified experts from private industry. 

(7) It is the policy of the United States 
to use export controls, including license fees, 
to secure the removal by foreign countries of 
restrictions on access to supplies where such 
restrictions have or may have a serious 
domestic inflationary impact, have caused or 
may cause a serious domestic shortage, or 
have been imposed for purposes of influenc- 
ing the foreign policy of the United States. 
In effecting this policy, the President shall 
make every reasonable effort to secure the 
removal or reduction of such restrictions, 
policies, or actions through international co- 
operation and agreement before resorting to 
the imposition of controls on the export of 
materials from the United States: Provided, 
That no action taken in fulfillment of the 
policy set forth in this paragraph shall apply 
to the export of medicine or medical supplies. 



AUTHORITY 

Sec. 4. (a) (1) The Secretary of Commerce 
shall institute such organizational and proce- 
dural changes in any office or division of the 
Department of Commerce which has hereto- 
fore exercised functions relating to the con- 
trol of exports and continues to exercise such 
controls under this Act as he determines are 
necessary to facilitate and effectuate the full- 
est implementation of the policy set forth in 
this Act with a view to promoting trade with 
all nations with which the United States is 
engaged in trade, including trade with (A) 
those countries or groups of countries with 
which other countries or groups of countries 
having defense treaty commitments with the 
United States have a significantly larger per- 
centage of volume of trade than does the 
United States, and (B) other countries eligi- 
ble for trade with the United States but not 
significantly engaged in trade with the United 
States. In addition, the Secretary shall review 
any list of articles, materials, or supplies, 
including technical data or other informa- 
tion, the exportation of which from the 
United States, its territories and possessions, 
was heretofore prohibited or curtailed with a 
view to making promptly such changes and 
revisions in such list as may be necessary or 
desirable in furtherance of the policy, pur- 
poses, and provisions of this Act. The Secre- 
tary shall include a detailed statement with 
respect to actions taken in compliance with 
the provisions of this paragraph in the sec- 
ond quarterly report (and in any subsequent 
report with respect to actions taken during 
the preceding quarter) made by him to the 
Congress after the date of enactment of this 
Act pursuant to section 10. 

(2) The Secretary of Commerce shall use 
all practicable means available to him to keep 
the business sector of the Nation fully ap- 
prised of changes in export control policy 
and procedures instituted in conformity with 
this Act with a view to encouraging the wid- 
est possible trade. 

(b) (1) To effectuate the policies set forth 
in section 3 of this Act, the President may 



69 



promoit or curtail the exportation from the 
United States, its territories and possessions, 
of any articles, materials, or supplies, includ- 
ing technical data or any other information, 
except under such rules and regulations as 
he shall prescribe. To the extent necessary 
to achieve effective enforcement of this Act, 
these rules and regulations may apply to the 
financing, transporting, and other servicing 
of exports and the participation therein by 
any person. Rules and regulations may pro- 
vide for denial of any request or application 
for authority to export articles, materials, 
or supplies, including technical data, or any 
other information, from the United States, 
its territories and possessions, to any nation 
or combination of nations threatening 
the national security of the United States if 
the President determines that their export 
would prove detrimental to the national se- 
curity of the United States, regardless of 
their availability from nations other than any 
nation or combination of nations threaten- 
ing the national security of the United States, 
but whenever export licenses are required 
on the ground that considerations of national 
security override considerations of foreign 
availability, the reasons for so doing shall 
be reported to the Congress in the quarterly 
report following the decision to require such 
licenses on that ground to the extent con- 
siderations of national security and foreign 
policy permit. The rules and regulations 
shall implement the provisions of section 
3(5) of this Act and shall require that all 
domestic concerns receiving requests for the 
furnishing of information or the signing 
of agreements as specified in that section 
must report this fact to the Secretary of 
Commerce for such action as he may deem 
appropriate to carry out the purposes of that 
section. In curtailing the exportation of any 
articles, materials, or supplies to effectuate 
the policy set forth in section 3(2) (A) of 
this Act, the President is authorized and 
directed to allocate a portion of export li- 
censes on the basis of factors other than a 
prior history of exportation. 



(2) The Secretary of Commerce, in co- 
operation with appropriate United States 
Government departments and agencies and 
the appropriate technical advisory commit- 
tees established under section 5(c), shall un- 
dertake an investigation to determine which 
articles, materials, and supplies, including 
technical data and other information, should 
no longer be subject to export controls be- 
cause of their significance to the national 
security of the United States. Notwithstand- 
ing the provisions of paragraph (1), the 
President shall remove unilateral export con- 
trols on the export from the United States of 
articles, materials, or supplies, including 
technical data or other information, which he 
determines are available without restriction 
from sources outside the United States in 
significant quantities and comparable in 
quality to those produced in the United 
States, except that any such control may re- 
main in effect if the President determines 
that adequate evidence has been presented to 
him demonstrating that the absence of such 
a control would prove detrimental to the na- 
tional security of the United States. The na- 
ture of such evidence shall be included in the 
special report required by paragraph (4) . 

(3) In conducting the investigation re- 
ferred to in paragraph (2) and in taking the 
action required under such paragraph, the 
Secretary of Commerce shall give priority 
to those controls which apply to articles, 
materials, and supplies, including technical 
data and other information, for which there 
are significant potential export markets. 

(4) Not later than nine months after the 
date of enactment of the Equal Export Op- 
portunity Act, the Secretary of Commerce 
shall submit to the President and to the 
Congress a special report of actions taken 
under paragraphs (2) and (3). Such report 
shall contain — 

(A) a list of any articles, materials, and 
supplies, including technical data and other 
information, which are subject under this 
Act to export controls greater than those 
imposed by nations with which the United 



70 



States has defense treaty commitments, and 
the reasons for such greater controls ; and 

(B) a list of any procedures applicable to 
export licensing in the United States which 
may be or are claimed to be more burden- 
some than similar procedures utilized in na- 
tions with which the United States has de- 
fense treaty commitments, and the reasons 
for retaining such procedures in their pres- 
ent form. 

(c) (1) To effectuate the policy set forth 
in section 3(2) (A) of this Act, the Secretary 
of Commerce shall monitor exports, and con- 
tracts for exports, of any article, material, 
or supply (other than a commodity which is 
subject to the reporting requirements of sec- 
tion 812 of the Agricultural Act of 1970) 
when the volume of such exports in relation 
to domestic supply contributes, or may con- 
tribute, to an increase in domestic prices or 
a domestic shortage, and such price increase 
or shortage has, or may have, a serious ad- 
verse impact on the economy or any sector 
thereof. Information which the Secretary 
requires to be furnished in effecting such 
monitoring shall be confidential, except as 
provided in paragraph (2) of this subsection. 

(2) The results of such monitoring shall, 
to the extent practicable, be aggregated and 
included in weekly reports setting forth, with 
respect to each article, material, or supply 
monitored, actual and anticipated exports, 
the destination by country, and the domestic 
and worldwide price, supply, and demand. 
Such reports may be made monthly if the 
Secretary determines that there is insuffi- 
cient information to justify weekly reports. 

(d) Nothing in this Act or the rules or 
regulations thereunder shall be construed to 
require authority or permission to export, 
except where required by the President to 
effect the policies set forth in section 3 of 
this Act. 

(e) The President may delegate the power, 
authority, and discretion conferred upon him 
by this Act to such departments, agencies, 
or officials of the Government as he may deem 
appropriate. 

(f) The authority conferred by this sec- 



tion snail not De exercised witn respeci iu 
any agricultural commodity, including fats 
and oils or animal hides or skins, without the 
approval of the Secretary of Agriculture. 
The Secretary of Agriculture shall not ap- 
prove the exercise of such authority with 
respect to any such commodity during any 
period for which the supply of such com- 
modity is determined by him to be in excess 
of the requirements of the domestic economy, 
except to the extent the President determines 
that such exercise of authority is required to 
effectuate the policies set forth in clause (B) 
or (C) of paragraph (2) of section 3 of this 
Act. 

(g) Any export license application required 
by the exercise of authority under this Act 
to effectuate the policies of section 3(1) (B) 
or 3(2) (C) shall be approved or disapproved 
not later than 90 days after its submission. 
If additional time is required, the Secretary 
of Commerce or other official exercising au- 
thority under this Act shall inform the ap- 
plicant of the circumstances requiring such 
additional time and give an estimate of when 
his decision will be made. 

(h) (1) The Congress finds that the de- 
fense posture of the United States may be 
seriously compromised if the Nation's goods 
and technology are exported to a controlled 
country without an adequate and knowledge- 
able assessment being made to determine 
whether export of such goods and technology 
will significantly increase the military ca- 
pability of such country. It is the purpose of 
this subsection to provide for such an assess- 
ment and to authorize the Secretary of De- 
fense to review any proposed export of goods 
or technology to any such country and, when- 
ever he determines that the export of such 
goods or technology will significantly in- 
crease the military capability of such coun- 
try, to recommend to the President that such 
export be disapproved. 

(2) Notwithstanding any other provision 
of law, the Secretary of Defense shall deter- 
mine, in consultation with the export control 
office to which licensing requests are made, 
the types and categories of transactions 



71 - 



which should be reviewed by him to carry out 
the purpose of this subsection. Whenever a 
license or other authority is requested for 
the export of such goods or technology to 
any controlled country, the appropriate ex- 
port control office or agency to whom such 
request is made shall notify the Secretary of 
Defense of such request, and such office may 
not issue any license or other authority pur- 
suant to such request prior to the expiration 
of the period within which the President 
may disapprove such export. The Secretary 
of Defense shall carefully consider all notifi- 
cations submitted to him pursuant to this 
subsection and, not later than 30 days after 
notification of the request shall — 

(A) recommend to the President that 
he disapprove any request for the export 
of any goods or technology to any con- 
trolled country if he determines that the 
export of such goods or technology will 
significantly increase the military ca- 
pability of such country; 

(B) notify such office or agency that he 
will interpose no objection if appropriate 
conditions designed to achieve the purposes 
of this Act are imposed ; or 

(C) indicate that he does not intend to 
interpose an objection to the export of such 
goods or technology. 

If the President notifies such office or agency, 
within 30 days after receiving a recommenda- 
tion from the Secretary, that he disapproves 
such export, no license or other authoriza- 
tion may be issued for the export of such 
goods or technology to such country. 

(3) Whenever the President exercises his 
authority under this subsection to modify or 
overrule a recommendation made by the Sec- 
retary of Defense pursuant to this section, 
the President shall submit to the Congress a 
statement indicating his decision together 
with the recommendation of the Secretary of 
Defense. 

(4) As used in this subsection — 

(A) the term 'goods or technology' 
means — 



(i) machinery, equipment, capital 
goods, or computer software; or 

(ii) any license or other arrangement 
for the use of any patent, trade secret, 
design, or plan with respect to any item 
described in clause (i) ; 

(B) the term 'export control office' 
means any office or agency of the United 
States Government whose approval or per- 
mission is required pursuant to existing 
law for the export of goods or technology ; 
and 

(C) the term 'controlled country' means 
any Communist country as defined under 
section 620(f) of the Foreign Assistance 
Act of 1961. 

(i) In imposing export controls to effectu- 
ate the policy stated in section 3(2) (A) of 
this Act, the President's authority shall in- 
clude but not be limited to, the imposition of 
export license fees. 

PROCEDURES FOR HARDSHIP RELIEF FROM 
EXPORT CONTROLS 

Sec. 4A. (a) Any person who, in his do- 
mestic manufacturing process or other do- 
mestic business operation, utilizes a product 
produced abroad in whole or in part from a 
commodity historically obtained from the 
United States but which has been made sub- 
ject to export controls, or any person who 
historically has exported such a commodity, 
may transmit a petition of hardship to the 
Secretary of Commerce requesting an exemp- 
tion from such controls in order to alleviate 
any unique hardship resulting from the im- 
position of such controls. A petition under 
this section shall be in such form as the 
Secretary of Commerce shall prescribe and 
shall contain information demonstrating the 
need for the relief requested. 

(b) Not later than 30 days after receipt 
of any petition under subsection (a), the 
Secretary of Commerce shall transmit a 
written decision to the petitioner granting or 
denying the requested relief. Such decision 
shall contain a statement setting forth the 
Secretary's basis for the grant or denial. 
Any exemption granted may be subject to 



72 



such conditions as the Secretary deems ap- 
propriate. 

(c) For purposes of this section, the Sec- 
retary's decision with respect to the grant 
or denial of relief from unique hardship re- 
sulting directly or indirectly from the im- 
position of controls shall reflect the Secre- 
tary's consideration of such factors as — 

(1) Whether denial would cause a 
unique hardship to the applicant which can 
be alleviated Only by granting an exception 
to the applicable regulations. In determin- 
ing whether relief shall be granted, the 
Secretary will take into account: 

(A) ownership of material for which 
there is no practicable domestic market 
by virtue of the location or nature of 
the material; 

(B) potential serious financial loss to 
the applicant if not granted an excep- 
tion; 

(C) inability to obtain, except through 
import, an item essential for domestic 
use which is produced abroad from the 
commodity under control ; 

(D) the extent to which denial would 
conflict, to the particular detriment of 
the applicant, with other national poli- 
cies including those reflected in any in- 
ternational agreement to which the 
United States is a party ; 

(E) possible adverse effects on the 
economy (including unemployment) in 
any locality or region of the United 
States; and 

(F) other relevant factors, including 
the applicant's lack of an exporting his- 
tory during any base period that may be 
established with respect to export quotas 
for the particular commodity. 

(2) The effect a finding in favor of 
the applicant would have on attainment of 
the basic objectives of the short supply 
control program. 

In all cases, the desire to sell at higher prices 
and thereby obtain greater profits will not 
be considered as evidence of a unique hard- 
ship, nor will circumstances where the hard- 



ship is due to imprudent acts or failure to act 
on the part of the appellant." 

CONSULTATION AND STANDARDS 

Sec. 5. (a) In determining what shall be 
controlled or monitored under this Act, and 
in determining the extent to which exports 
shall be limited, any department, agency, or 
official making these determinations shall 
seek information and advice from the sev- 
eral executive departments and independent 
agencies concerned with aspects of our do- 
mestic and foreign policies and operations 
having an important bearing on exports. 
Such departments and agencies shall fully 
cooperate in rendering such advice and in- 
formation. Consistent with considerations 
of national security, the President shall from 
time to time seek information and advice 
from various segments of private industry 
in connection with the making of these de- 
terminations. In addition, the Secretary of 
Commerce shall consult with the Federal 
Energy Administration to determine whether 
monitoring under section 4 of this Act is 
warranted with respect to exports of facili- 
ties, machinery, or equipment normally and 
principally used, or intended to be used, in 
the production, conversion, or transportation 
of fuels and energy (except nuclear energy), 
including but not limited to, drilling rigs, 
platforms, and equipment; petroleum refin- 
eries, natural gas processing, liquefication, 
and gasification plants; facilities for produc- 
tion of synthetic natural gas or synthetic 
crude oil; oil and gas pipelines, pumping 
stations, and associated equipment; and 
vessels for transporting oil, gas, coal, and 
other fuels. 

(b) (1) In authorizing exports, full utiliza- 
tion of private competitive trade channels 
shall be encouraged insofar as practicable, 
giving consideration to the interests of small 
business, merchant exporters as well as pro- 
ducers, and established and new exporters, 
and provision shall be made for representa- 
tive trade consultation to that end. In addi- 
tion, there may be applied such other stand- 



73 - 



ards or criteria as may be deemed necessary 
by the head of such department, or agency, or 
official to carry out the policies of this Act. 
(2) Upon imposing quantitative restric- 
tions on exports of any article, material, or 
supply to carry out the policy stated in sec- 
tion 3(2) (A) of this Act, the Secretary of 
Commerce shall include in his notice pub- 
lished in the Federal Register an invitation 
to all interested parties to submit written 
comments within fifteen days from the date 
of publication of the impact of such restric- 
tions and the method of licensing used to 
implement them. 

(c) (1) Upon written request by repre- 
sentatives of a substantial segment of any 
industry which produces articles, materials 
and supplies, including technical data and 
other information, which are subject to ex- 
port controls or are being considered for such 
controls because of their significance to the 
national security of the United States, the 
Secretary of Commerce shall appoint a tech- 
nical advisory committee for any grouping 
of such articles, materials, and supplies, in- 
cluding technical data and other information, 
which he determines is difficult to evaluate 
because of questions concerning technical 
matters, worldwide availability and actual 
utilization of production and technology, or 
licensing procedures. Each such committee 
shall consist of representatives of United 
States industry and government, including 
the Departments of Commerce, Defense, and 
State, and, when appropriate, other Govern- 
ment departments and agencies. No person 
serving on any such committee who is repre- 
sentative of industry shall serve on such 
committee for more than two consecutive 
years. 

(2) It shall be the duty and function of 
the technical advisory committees established 
under paragraph (1) to advise and assist the 
Secretary of Commerce and any other de- 
partment, agency, or official of the Govern- 
ment of the United States to which the Presi- 
dent has delegated power, authority, and dis- 
cretion under section 4(d) with respect to 
actions designed to carry out the policy set 



forth in section 3 of this Act. Such commit- 
tees shall be consulted with respect to ques- 
tions involving technical matters, worldwide 
availability and actual utilization of produc- 
tion and technology, and licensing procedures 
wnich may affect the level of export controls 
applicable to any articles, materials, or sup- 
plies, including technical data or other infor- 
mation, and including those whose export is 
subject to multilateral controls undertaken 
with nations with which the United States 
has defense treaty commitments, for which 
the committees have expertise. Such com- 
mittees shall also be consulted and kept fully 
informed of progress with respect to the in- 
vestigation required by section 4(b)(2) of 
this Act. Nothing in this subsection shall 
prevent the Secretary from consulting, at 
any time, with any person representing in- 
dustry or the general public regardless of 
whether such person is a member of a techni- 
cal advisory committee. Members of the pub- 
lic shall be given a reasonable opportunity, 
pursuant to regulations prescribed by the 
Secretary of Commerce, to present evidence 
to such committees. 

(3) Upon request of any member of any 
such committee, the Secretary may, if he 
determines it appropriate, reimburse such 
member for travel, subsistence, and other 
necessary expenses incurred by him in con- 
nection with his duties as a member. 

(4) Each such committee shall elect a 
chairman, and shall meet at least every three 
months at the call of the Chairman, unless 
the Chairman determines, in consultation 
with the other members of the committee, 
that such a meeting is not necessary to 
achieve the purposes of this Act. Each such 
committee shall be terminated after a period 
of two years, unless extended by the Secre- 
tary for additional periods of two years. The 
Secretary shall consult each such committee 
with regard to such termination or extension 
of that committee. 

(5) To facilitate the work of the technical 
advisory committees, the Secretary of Com- 
merce, in conjunction with other depart- 



74 



merits and agencies participating in the ad- 
ministration of this Act, shall disclose to 
each such committee adequate information, 
consistent with national security, pertaining 
to the reasons for the export controls which 
are in effect or contemplated for the group- 
ing of articles, materials, and supplies with 
respect to which that committee furnishes 
advice. 



\ IOLATIONS 

Sec. 6. (a) Except as provided in subsec- 
tion (b) of this section, whoever knowingly 
violates any provision of this Act or any 
regulation, order, or license issued there- 
under shall be fined not more than $10,000 
or imprisoned not more than one year, or 
both. For a second or subsequent offense, 
the offender shall be fined not more than three 
times the value of the exports involved or 
$20,000, whichever is greater, or imprisoned 
not more than five years, or both. 

(b) Whoever willfully exports anything 
contrary to any provision of this Act or any 
regulation, order, or license issued there- 
under, with knowledge that such exports will 
be used for the benefit of any Communist- 
dominated nation, shall be fined not more 
than five times the value of the exports in- 
volved or $20,000, whichever is greater, or 
imprisoned not more than five years, or both. 

(c) The head of any department or agency 
exercising any functions under this Act, or 
any officer or employee of such department or 
agency specifically designated by the head 
thereof, may impose a civil penalty not to 
exceed $1,000 for each violation of this Act 
or any regulation, order, or license issued 
under this Act, either in addition to or in 
lieu of any other liability or penalty which 
may be imp 

(d) The payment of any penalty imposed 
pursuant to subsection (c) may be made a 
condition, for a period not exceeding one year 
after the imposition of such penalty, to the 
granting, restoration, or continuing validity 
of any export license, permission, or privilege 



granted or to De grantea to tne person upon 
whom such penalty is imposed. 

(e) Any amount paid in satisfaction of 
any penalty imposed pursuant to subsection 
(c) shall be covered into the Treasury as a 
miscellaneous receipt. The head of the de- 
partment or agency concerned may, in his 
discretion, refund any such penalty, within 
two years after payment, on the ground of a 
material error of fact or law in the imposi- 
tion. Notwithstanding section 1346(a) of 
title 28 of the U.S. Code, no action for the 
refund of any such penalty may be main- 
tained in any court. 

(f) In the event of the failure of any 
person to pay a penalty imposed pursuant 
to subsection (c), a civil action for the re- 
covery thereof may, in the discretion of the 
head of the department or agency concerned, 
be brought in the name of the United States. 
In any such action, the court shall determine 
de novo all issues necessary to the establish- 
ment of liability. Except as provided in this 
subsection and in subsection (d), no such 
liability shall be asserted, claimed, or re- 
covered upon by the United States in any 
way unless it has previously been reduced to 
judgment. 

(g) Nothing in subsection (c), (d),or (f) 

limits 

(1) the availability of other adminis- 
trative or judicial remedies with respect to 
violations of this Act, or any regulation, or- 
der, or license issued under this Act; 

(2) the authority to compromise and 
settle administrative proceedings brought 
with respect to violations of this Act, or any 
regulation, order, or license issued under this 
Act; or 

(3) the authority to compromise, remit 
or mitigate seizures and forfeitures pursuant 
to section 1(b) of title VI of the Act of 
June 15, 1917 (22 U.S.C. 401(b)). 

ENFOK<KMKNT 

Sec. 7. (a) To the extent necessary or ap- 
propriate to the enforcement of this Act or 



75 



to the imposition of any penalty, forfeiture, 
or liability arising under the Export Control 
Act of 1949, the head of any department 
or agency exercising any function thereunder 
(and officers or employees of such depart- 
ment or agency specifically designated by 
the head thereof) may make such investiga- 
tions and obtain such information from, re- 
quire such reports or the keeping of such 
records by, make such inspection of the books, 
records, and other writings, premises, or 
property of, and take the sworn testimony 
of, any person. In addition, such officers or 
employees may administer oaths or affirma- 
tions, and may by subpena require any person 
to appear and testify or to appear and pro- 
duce books, records, and other writings, or 
both, and in the case of contumacy by, or 
refusal to obey a subpena issued to, any such 
person, the district court of the United States 
for any district in which such person is found 
or resides or transacts business, upon ap- 
plication, and after notice to any such person 
and hearing, shall have jurisdiction to issue 
an order requiring such person to appear and 
give testimony or to appear and produce 
books, records, and other writings, or both, 
and any failure to obey such order of the 
court may be punished by such court as a 
contempt thereof. 

(b) No person shall be excused from com- 
plying with any requirements under this sec- 
tion because of his privilege against self- 
incrimination, but the immunity provisions 
of the Compulsory Testimony Act of Feb- 
ruary 11, 1893 (27 Stat. 443; 49 U.S.C. 46) 
shall apply with respect to any individual 
who specifically claims such privilege. 

(c) No department, agency, or official ex- 
ercising any functions under this Act shall 
publish or disclose information obtained 
hereunder which is deemed confidential or 
with reference to which a request for con- 
fidential treatment is made by the person 
furnishing such information, unless the head 
of such department or agency determines 



that the withholding thereof is contrary to 
the national interest. 1 

(d) In the administration of this Act, re- 
porting requirements shall be so designed as 
to reduce the cost of reporting, recordkeep- 
ing, and export documentation required un- 
der this Act to the extent feasible consistent 
with effective enforcement and compilation 
of useful trade statistics. Reporting, record- 
keeping, and export documentation require- 
ments shall be periodically reviewed and re- 
vised in the light of developments in the field 
of information technology. A detailed state- 
ment with respect to any action taken in com- 
pliance with this subsection shall be included 
in the first quarterly report made pursuant to 
section 10 after such action is taken. 

EXEMPTION FROM CERTAIN 

PROVISIONS RELATING TO 

ADMINISTRATIVE PROCEDURE AND 

JUDICIAL REVIEW 

Sec. 8. The functions exercised under this 
Act are excluded from the operation of sec- 
tions 551, 553-559, and 701-706, of title 5 
U.S. Code. 

INFORMATION TO EXPORTERS 

Sec. 9. In order to enable U.S. exporters to 
coordinate their business activities with the 
export control policies of the U.S. Govern- 
ment, the agencies, departments, and offi- 
cials responsible for implementing the rules 
and regulations authorized under this Act, 
shall, if requested, and insofar as it is con- 
sistent with the national security, the for- 
eign policy of the United States, the effec- 
tive administration of this Act, and require- 
ments of confidentiality contained in this 
Act— 

(1) inform each exporter of the considera- 
tions which may cause his export license re- 
quest to be denied or to be the subject of 
lengthy examination ; 

(2) in the event of undue delay, inform 
each exporter of the circumstances arising 



76 - 



during the Government's consideration of his 
export license application which are cause 
for denial or for further examination ; 

(3) give each exporter the opportunity to 
present evidence and information which he 
believes will help the agencies, departments, 
and officials concerned to resolve any prob- 
lems or questions which are, or may be, con- 
nected with his request for a license; and 

(4) inform each exporter of the reasons 
for a denial of an export license request. 

QUARTERLY REPORT 

SEC. 10(a) The head of any department or 
agency, or other official exercising any func- 
tions under this Act, shall make a semian- 
nual report ' to the President and to the Con- 
gress of his operations hereunder. 

(b) (1) The quarterly report required for 
the first quarter of 1975 and every second 
report thereafter shall include summaries of 
the information contained in the reports re- 
quired by section 4(c)(2) of this Act, to- 
gether with an analysis by the Secretary of 
Commerce of (A) the impact on the economy 
and world trade of shortages or increased 
prices for articles, materials, or supplies 
subject to monitoring under this Act, (B) 
the worldwide supply of such articles, mate- 
rials, and supplies, and (C) actions taken by 
other nations in response to such shortages 
or increased prices. 

(2) Each such quarterly report shall also 
contain an analysis by the Secretary of Com- 
merce of (A) the impact on the economy and 
world trade of shortages or increased prices 
for commodities subject to the reporting re- 
quirements of section 812 of the Agricultural 
Act of 1970, (B) the worldwide supply of 
such commodities, and (C) actions being 
taken by other nations in response to such 
shortages or increased prices. The Secretary 
of Agriculture shall fully cooperate with the 
try of Commerce in providing all in- 
formation required by the Secretary of Com- 
merce in making such analysis. 



DEFINITION 

Sec. 11. The term "person" as used in this 
Act includes the singular and the plural and 
any individual, partnership, corporation, or 
other form of association, including any gov- 
ernment or agency thereof. 



EFFECTS ON OTHER ACTS 

Sec. 12. (a) The Act of February 15, 
1936 (49 Stat. 1140), relating to the licensing 
of exports of tinplate scrap, is hereby super- 
seded; but nothing contained in this Act shall 
be construed to modify, repeal, supersede, or 
otherwise affect the provisions of any other 
laws authorizing control over exports of any 
commodity. 

(b) The authority granted to the Presi- 
dent under this Act shall be exercised in such 
manner as to achieve effective coordination 
with the authority exercised under section 
414 of the Mutual Security Act of 1954 (22 
U.S.C. 1934). 



EFFECTIVE DATE 

Sec. 13. (a) This Act takes effect upon the 
expiration of the Export Control Act of 1949. 

(b) All outstanding delegations, rules, 
regulations, orders, licenses, or other forms 
of administrative action under the Export 
Control Act of 1949 or section 6 of the Act 
of July 2, 1940 (54 Stat. 714), shall, until 
amended or revoked, remain in full force and 
effect, the same as if promulgated under this 
Act. 



TERMINATION DATE 

SEC. 14. The authority granted by this Act 
terminates on September 30, 1976, or upon 
any prior date which the Congress by con- 
current resolution or the President by proc- 
lamation may designate. 



77 



Appendix B. Commodity Control List (sample page) 



Department of Commerce 

Fxporl Control Commodity Number 

and 


L'nil 

1 


l « 


Validated 

Licen.e 

Required for 

Country Crocp. 

Shown Below 


CLV $ Value Limit. 
for Shipment, to 


s! 


Commodity. Description 


T 


V 


Q 


trtfcj 



71980(20)A Vacuum metallizing machinery spe- || || 411 || QSTVWYZ || 500 || 500 || || 

cially designed for the continuous strip roll coating 

with metallized sheathing of synthetic film for dielectric use in the manufacture of capacitors listed under No. 
7299 {/ such number is followed by the code letter "A" which is capable of being used with any of the following 
devices, whether or not equipped with such devices: (a) cutting devices for slitting the film into strips suitable 
for capacitors, (b) shadow masks or similar devices to achieve uncoated strips, (c) controls for the automatic 
correction of the coating process, and (d) special devices to burn out the metal deposit on pinholes to prevent 
electrical faults in the capacitors; and specially designed parts and accessories, n.e.c. 1 

71980(2JM Rocket launching ramps, towers, and |! || 411 || QSTVWYZ [ 500 |] 500 || || 

associated equipment for meteorological rockets; 
and specially designed parts, n.e.c. 

71980f22,)G Commodities listed in § 399.2, Inter- || |! 418 || SZ || — || — || — U 

pretation 29. 

7l980(22a)B Nuclear reactor fuel fabrication ma- || || 412 || QSTVWYZ || || || || R 

chinery and equipment, n.e.c; and specially de- 
signed parts and accessories, n.e.c. (Also see § 378.5 for special provisions.) 

71980f25;j Commodities not listed above, classi- || || 418 || QSWYZ || — || — || 1,000 || 

fied under Schedule B Nos. 719.8005 through 

719.8095. (Specify by name.) (Also specify 7-digit Schedule B No.) 

7199(\.;A Molding boxes and molds for artillery || No. || 421 || QSTVWYZ || 500 || || || 

molding or casting. 

7199(2M Pipe valves specially designed for nu- || Lb. |j 401 || QSTVWYZ || 100)1 100 || || 

clear reactors; and specially designed parts. 
(Also see §378.5 for special provisions.) 

7199C5M Valves, 1 inch or more in diameter, fitted 1 Lb. || 411 || QSTVWYZ || 100 || 100 || || 

with bellows seal, and wholly made of or lined 

with aluminum, nickel, or alloys containing 60 percent or more nickel; and specially designed parts, n.e.c. (Give 

full specifications.) 

7199C4M Valves, cocks, or pressure regulators |[ Lb. || 411 || QSTVWYZ || 500 || 500 || || 

(a) specially designed to operate at temperatures 

below minus 364° F. (minus 220° C), or (b) with all flow contact surfaces made of or lined with 90 percent or 
more tantalum, titanium, or zirconium, either separately or combined, except materials containing more than 97 
percent and less than 99.7 percent titanium; and specially designed parts, n.e.c. (Give full specifications.) 

1\99(5)K Gaskets (joints) made of polymeric sub- || || 221 || QSTVWYZ || 100 || 100 || || P-3 

stances as defined in § 399.2, Interpretation 18(a). 

(Specify name and value of substances and total value of other materials.) 
7199f5a,»B Gaskets (joints) made of thermally || || 222 || QSTVWYZ II 100 || 100 || || 

stable polymeric substances as defined in § 399.2, 

Interpretation 18(b). (Specify name and value of substances and total value of other materials.) 

1199(6)0 Commodities not listed above, classified || || 218 || SZ || — || — || — II 

under Schedule B Nos. 719.9120 through 719.9900. 
(Specify by name.) (Also specify 7-digit Schedule B No.) 



78 - 



Appendix C. Country Groups 



Country Group Q 

Romania 

Country Group S 

Southern Rhodesia 

Country Group T 
North America 
Northern Area: 

Greenland 

Miquelon and St. Pierre Islands 
Southern Area: 

Mexico (including Cozumel and Revilla 
Gigedo Islands) 
Central America: 

British Honduras 

Costa Rica 

El Salvador 

Guatemala 

Honduras (including the Bay Islands) 

Nicaragua 

Panama, Republic of 
Bermuda and Caribbean Area: 

Bahamas 

Barbados 

Bermuda 

Dominican Republic 

French West Indies 

Haiti (including Gonave and Tortuga 
Islands) 

Jamaica 

Leeward and Windward Islands 

Netherlands Antilles (formerly Curacao, 
N.W.I.) 

Trinidad and Tobago 
South America 
Northern Area: 

Colombia 

French Guiana (including Inini) 

Guyana (formerly British Guiana) 

Surinam (Netherlands Guiana) 

Venezuela 



Western Area: 

Bolivia 

Chile (including the islands Sala-y-Gomez, 

Juan Fernandes, San Felix, San Ambro- 

sio and Easter Island) 
Ecuador (including the Galapagos 

Islands) 
Peru 
Eastern Area: 
Argentina 
Brazil (including the islands St. Paul, 

Fernando Noronha, and Trinidad (in 

South Atlantic) ) 
Falkland Islands 
Paraguay 
Uruguay 

Country Group V 

All countries not included in any other coun- 
try group (except Canada). 

Country Group W 

Poland 

Country Group Y 

Albania 

Bulgaria 

Czechoslovakia 

Estonia 

German Democratic 

East Berlin) 
Hungary 
Laos 
Latvia 
Lithuania 
Outer Mongolia 
People's Republic of China 

public of China (Taiwan) 
Union of Soviet Socialist Republics 

Country Group Z 

North Korea 
North Vietnam 
South Vietnam 
Cambodia 
Cuba 



Republic (including 



(excluding Re- 
( Formosa) ) 



- 79 



Appendix D. Office o 
Organization 

- .01 The Office of t he Director includes: 
The Director who shall plan and direct 
the formulation and execution of policies 
and programs of the Office in implemen- 
tation of the Export Administration Act 
of 1969, as amended; the Deputy Director 
who shall assist in the direction of the 
Office and perform the functions of the 
Director in his absence; and the Oper- 
ating Committee (OC) Chairman, who 
shall direct the OC, the Commerce De- 
partment's interagency senior staff level 
working committee through which in- 
formation, advice and policy positions 
from other departments and agencies 
concerned with controls over exports are 
sought and obtained by the Department. 
The OC is an integral part of the inter- 
agency committee structure addressing 
policy issues associated with export con- 
trols and includes the Advisory Commit- 
tee on Export Policy (ACEP — at the As- 
sistant Secretary level) and the Export 
Administration Review Board (EAPJB — 
at the Cabinet level). The Office of the 
Deputy Assistant Secretary for East- 
West Trade is responsible for providing 
the Executive Secretary function to the 
ACEP and the EARB. The Chairman of 
the OC shall serve in this capacity. The 
Director or his designees shall administer 
and, in conjunction with the Depart- 
ment's Office of the General Counsel, en- 
force the export control regulations and 
programs required to carry out Depart- 
mental responsibilities under the Export 
Administration Act of 1969, as amended. 
The Office shall represent the Depart- 
ment on committees dealing with East- 
West exchanges. The Director shall su- 
pervise and direct the following organi- 
zational components: 

.02 The Policy Planning Division 
shall develop recommendations for ex- 
port control policies to be applied to 
specific countries and commodities and 
technical data; recommend the dispo- 
sition of certain license applications 
which present special policy or security 
problems; represent the Department on 
certain committees and working groups 
of the Department of State's Economic 
Defense Advisory Committee (EDAC) 
and coordinate Department policies and 
programs concerning United States and 
international export controls and U.S. 
economic defense; and represent the 
Department on national security and 
foreign policy matters involving export 
controls before the Operating Commit- 
tee of the Advisory Committee on Ex- 
port Policy (ACEP). 

.03 -The Operations Division shall 
Drocess license aDolications: develop in- 
ternal operating procedures; conduct 
public contact activities; Issue U.S. 
import certificates; prepare analytical 
and statistical reports on export con- 
trol activities; develop and publish ex- 
port control regulations and procedures 
as well as instructions for Foreign 
Service Officers; provide staff support to 
the Export Administration Technical 



f Export Administration; 

and Functions 

Advisory Committees; carry out Bureau 
emergency readiness and planning func- 
tions; collect and disseminate statistics 
on requests made to U.S. exporters to 
cooperate in restrictive trade practices or 
boycotts; and prepare the semi-annual 
report of the Secretary of Commerce on 
Export Administration to the President 
and the Congress, and prepare all other 
OEA publications and reports. 

.04 The Compliance Division shall 
ensure compliance with the export ad- 
ministration regulations, develop intel- 
ligence information regarding areas of 
possible export administration viola- 
tions, investigate suspected violations, 
and prepare cases on violations for re- 
ferral to the Hearing Commissioner 
through the Office of the General Coun- 
sel or to the Office of the General Coun- 
sel for other legal guidance or action; 
promote compliance with export admin- 
istration clearance regulations; develop 
and coordinate methods and systems to 
reduce paperwork and simplify export 
documentation and clearance proce- 
dures; and maintain liaison with the 
Bureau of Customs, U.S. Postal Service, 
and other Government and private or- 
ganizations on export administration 
compliance and facilitation matters. 

.05 The Short Supply Division shall 
administer short supply commodity con- 
trol programs and monitor exports and 
contracts for exports when commodities 
are in present or potential short supply 
or likely to have an inflationary impact. 
In addition, the division shall coordinate 
the preparation of weekly and/or 
monthly reports of monitoring results, 
and the analysis of short supply activi- 
ties in the semi-annual report to the 
Congress. Further, the division shall be 
responsible for the advance planning 
and proper programming necessary for 
a continued smooth and effective im- 
plementation of current and new short 
supply programs including monitoring 
activities. This division also has clear- 
ance responsibility within DIBA for all 
short supply activities. 

.06 The licensing divisions as stated 
below: 

Computer Division, Capital Goods and 
Production Materials Division, Elec- 
tronic Equipment Division 

Each of these divisions shall for the 
products and related technical data 
under its jurisdiction, administer con- 
trols over exports In accordance with the 
Export Administration Act, as amended, 
and the policies and procedures estab- 
lished by the Office of Export Adminis- 
tration: determine and take appropriate 
action on export license applications; 
conduct technical analyses of products 
and technical data including potential 
end-use applications, to determine and 
recommend the extent of controls to be 
applied; and render assistance to indus- 
try and other Government agencies on 
export administration problems within 
its jurisdiction." 



Appendix E. Export Licenses Approved and Reexports Authorized (sample issue) 






Export Licenses Approved and 
Reexports Authorized 

U.S. DEPARTMENT OF COMMERCE/Domestic and International Business Administration 

Bureau ol East West Trade Office of Eiporl Administration 



April lb. 1976 EXPORT UC 


ENSES APPROVED 








COMMODITY DESCRIPTION 


TOTAL COUNTRY Of 
DOLLAR VALUE DESTINATION 


ELECTBON1C COBBNjIINO E»ulP»£NT 


5 62.soo 


i:-r»-- .i 




ELECTRONIC COMPUTING £OulP»CNI 


SO. TOO 


ABOENT |BA 




-. - .. ut 


2.000 






: »eco»oc«* ano pabts 




BB«2|L 




ElECTBOnic COMPUTING £OuIP»Exr 


4.49? 


BBi?K 




TORS 


s.»«o 


SBA^K 




P£TBCH.EUM ANO P£TBOL£uM PBOOuCTS 


46T.S00 


.... . 




PETBOLEuM ANO PETROLEUM PRODUCTS 




C»»iOA 




electronic computing £OuIb«ent 


364. 100 


C-UE 




ELECTRONIC COMPUTING f.. 


.S.OOO 


COL o*ei> 




- 


600.000 


COLU-914 




F UtO-.I-O «IBCB»f I 


..sso.ooo 


COLOnei' 




B£IBOlEum 1NO B£lBOv.EuM PaOOUCTS 




40ATEM» L i 




IC »tCOBOfB» ANO B«BTS 


1.06S 


JA»A|CA 




BfTBOLElP- * N P£TROl.Eu" PRODUCTS 


1 1 ••«» 


"£«IC0 




• ;»s cooi»»c«' 


SO. 000 


»£«IC0 




.' i»NS Ea»|P"£NI 


7S.000 


"€«IC0 




P£TSOL£U« 1X0 PETROLEUM PHOOUCTS 


436.440 


■«£«IC0 




1U««IC«'^ 


429. 0'4 


«£»tC0 




test i-c equipment 




-EMC- 




l«ntB4tta ci'cuiis 




»E«IC0 




TRANSISTORS 




«£«IC0 




SfNICONOuCTOB WO. EOu:-- 




«E«ICO 




se»konouctor nanw .cturing eouIP. 

Ct»T»|f 

• 40 10 SPEC'"-" »X»v'IEBS 


TINE LIMIT 


»E»IC0 
•EIICO 




ELECTBONIC COMPUTING EOuIR-EXT 


13.S30 






jy.0EB.iTE9 DETECTION CXjI'-E"' 


260.000 


UBO&U4' 




ElEC'bonic computing £a^:B-[s: 


73.000 


■ 




Ljeaic«»Ts 


•3mM« 


1LGE»II 




opucal elE«lnts 


S40 


•UST04L14 




El.ECTBOi.IC COBPuTlxG eOu|PȣI.T 


122.400 


1USTB4LI* 




ElECTBoxic COmp. 


II6-S60 


AUS'041. !• 




ELECTBOXIC COMPETING EBUIO-EXT 


soo.ooo 


4USTJ» L ]4 




CO«P U UNG EOolB-f.1 


23.866 


■ 




CECTBOMIC TESI EOutP"ENT 


621 .S2S 


4USTB4LIA 




ElECTBONR COMPUTING £9ulB»f.T 








ELECTBOB *«e-t 


7.000 


iUSTO|A 




ELECTBONIC COMPUTING EOu|B"£Nl 


1 7.947 






ELECTS. • "l"' 




AUSTBU 




ELECTBOxl; dNVUI!"! E»jl p "E"T 


6.44S 


AuSTB|4 




pMOt04B4P«IC Ell." »"0 »L«Ui 




4USTBI4 




'-ASTICS 
• >.S E4olB»f' 




«£L31U» 




4.100 


AE^GIU" 




C0mnunic4TIOxs EO«|P»£nt 


1.033 


SEi-OIo" 




ELECTRONIC COmPuMng £aul»-t"l 


200.000 


BELOIu" 




■AGxCMC T1P£ 




SELGIvy 




ElECTBOnic cu«BuMNG £9ulP"ENI 


26. 300. 000 






LU8-MC4XTS 


S.S20 






t»CTEB'« 


40 






ELECTBONIC CONB u T|NG EOulP-txT 


11.3SI 






IBCulTS 


1.121 


»EO B£B uf 




ElECTBoxic CO-PuUNG EC 




EEO BfP u f 




B-OfOOB»<. 


1.161 


f£0 Bl» Of 






6.SS0 


FEO B£» Of 




■ 








ElECIBOnk 'ESI 1*. 








ELECTBOs —{•.! 
ElECTBON TuRfS 


2SS.H00 
3.0S0 
S6..>-. 






. 


6S.0OO 






. JXS EOu|P-IXI 


1.7(2 


f[0 BE" J» 
f£0 B£B Of 


GIP»»H. 


ElEcibv -»ext 


S7.910 


- COMPUHNG £0'. - 
ELECTBO* 
PHOtOWKPflC ill." 


20. !«0 
4.900 


f£0 Bff Of 


2.S31 






SF-ICONOuOOP «*0. £OulP«£Nl 




f£0 B£B Of 




SE"ICOnou' ' 


I.4M 


FEO B£B Of 


GtB«4... 


SE"ICONOuCI06 WO. £OulB"C"' 


1.636 


f£0 B£B Of 


GEBBANT 


ElECTBOnIC COMMUTING EOulP«fxt 


17.S10 


f£0 BfB Of 


ELECTRONIC TEST ll.STBu-E-.tS 


3.I9S 






RESINS ANO PLASTICS 




■ 




- ' S "EC 


11 .2SS 








I2.S9S 






( f|L« 








- • 


1 36.S06 


• 




- ■ 


36.000 














- 








" 


6.462 








6.666 






- 


366.000 







EXPORT LICENSES APPROVED 






TOTAL 


COUNTRY Of 


COMMODITY DESCRIPTION 


DOLLAR VALUE 


DESTINATION 


MONTE BBOUS «EtALS 


S 1 6 . 09S 


TRANCE 


ElECTBOMIC C0"4B U T|»G £OulB«£NT 


67.400 


fBANCE 


ElECTBONIC co»p u ti»o couib»e-t 


6.9B2 


fBAXCE 


XOOFEBBOUS «£T4LS 


3.709 


FRANCE 


OPTICAL £i.e«i RTS 


39.ISS 


F94XCE 


ELECTBOXIC COHPuUXG EOuIP«ENT 


7S.000 


FRAXCE 


U N0EB»»TEB 0£TECT|O»l EOuIP-E-t 


40.264 


FBAXCE 




9.917 


FBAXCE 


NETAL.ORHIXG "4C-IXE TOOLS 


13.440 


FRANCE 


•A&XET1C TAPE 


1.260 


FRANCE 


ELECTBOXIC COxPuIIXG E0 U IPȣXT 




GREECE 


IXIEGB4TEO CIBCUlTS 


2.600 


HOMO «OXu 


BiCT£B|» 


BO 


1NOI1 


[XTEGB4TE0 CIRCUITS 


14.076 


I NO 14 


IXTEGBAIEO CIBCUlTS 


1 .66 3 


IN0I6 


"4&XETIC B£C0B0£OS »XO »""5 


IS. 260 




CEXTBIfuCES 


SO. 160 


INOIA 


OLVES 


4.690 


INOII 


M6U6I »t lOX^, Eicl^-I »1 


122 


IRIX 


[XTEGBATEO CIBCUlTS 


2.47S 


IB1X 


i bans is mas 


216 


184X 


S£*ico>»oucro''s 


S.66S 




...xchBOS 4X0 B£S0l«£BS 


B.466 


|RA« 


.j«U CBtST*LS 




ISRAEL 


P-0TOO««BxlC f|L» 


1.990 


ISBAf . 


C0««UXICAIIOxs EOBlP-EXI 


I.3S0 


ISRAEL 


P-0T0&B4B-IC FIL» 


112 


ISRifL 


-- > .1 IOXS EKOlP-ENI 


8.064 


IS"»EL 


CO"P4SSES/GraosC0»lC EJulP-EX' 


9.6S0 


ITALY 


8«CT£B|» 


40 


IT1LT 


TBAXSISIOBS 


4.160 


IT4LT 


ELECTBOXIC COBPutlXt, E0u|P-EHT 


4.8S0 


ITALY 


"4GXEIIC B£C0B0E a S »X0 PARTS 


I.MS 


IT1LT 


ELECTBIC fUBXACES 




IT ALT 


ELECTBOXIC C0*PuUN« EJu|P""tNl 


2.900 


I I6LT 


COxxuNICATIOxS EObIPxixi 


9.2'0 


IT6L7 


ELECTBOXIC T£S1 1XSI»UX£XTS 






ELECTBOXIC CO-Pu'lxG EOulP-EXT 


I7.S36 


ITALY 


TK4XSISTOBS 


2*900 


HALT 


ELECTBOXIC TEST EOu|P-f.' 


7.96S 


ITALY 


BESIXS 4X0 PL4SMCS 


22.110 


IT4LY 


ELECTBOXIC Ci)«P'j'|xG E3u|P»exi 


6. BOO 


IT4LY 


IH4XSIST0BS 


4.860 


ITALY 


ELECT BOX | C TEST IX 






CAMERAS 


4.066 




ELECtBoxic cOxPuMXw E3ulP*txI 


S0.3S0 


J1P4N 


l-'t i-i'EO CIBCUlTS 


17.200 


J4P4N 


ELECTBOXIC C0XP U I|XG £0uIP»EXl 


13S.SO0 


Jl"> 


E^fCTBOX TUBES 


1.642 


J.'l- 


P4-IS 140 ACCtSSOUIES X£C 


10.064 




ElEC'BOXK C0-B U T|XG ED 


I.BOO 


J4P4N 


«AiX£l|c "t 


26.4S6 


J1P4X 


ELECTBOXIC CO — 


S.IBO 




-.-»U ' ll» » s o R| . 


10.73S 




[.!£l»OMl C0-- 




JAP4N 


■ IC co«pl)T l*u EJulP-txr 


4. POO 




ELECTBOXIC CO«PuI|XG £O u |P-tXt 


2S.S00 


J1P4X 


OSC KLOSCOPtS 


3S.69| 




BtSIXS AXO PLASTICS 


3.2') 


J4P1X 


ELtCtBOXK CO-PuUXG EJulP»Ext 


7.I3S 


.4-4.. 


ELECTBOXIC CAPACMl»«S 


3.630 


.•"^ 


IxtlGBATEO CIBCUlTS 


20.S60 


J4P4M 


P4-IS AXO ACCESSOBUs xtc 


2.660 




■AOMtlll • 


47S.000 


J4P4N 


SI»ICOxOUCTO» »>G. EOuIPXEXI 


1 .6S6 


J4P1N 


roa «4X«f iCTuaixO EOulP. 


S.699 




ELECTBOXIC COXPuHXG fOvj|PȣXI 


S8.7S6 


JiPiN 


e^ectbox: 




• ■ 


ELECTBOXIC COxPuHxu (JuIP-txr 






ELECTBOXIC C0xpuT|X0E0v 


S.4'6 




ELlCTBOXIC COXPuHXG [OulRafon 




-1". 


I.IC TRONIC COMBUllXi, EO\ 


6.312 


• • 


»1»CM47I B4BIS 6X0 »CCESS X( C 


'SO. 000 


. ., 




6.63S 


4£X.4 




2. SOB 




, 1 ^o»»ul |Xu [OulP-rxT 


7.266 




6 l( CO»PuTIXG [OulRRCMI 


SOO.OOO 




IlEC'RONIC CL)-'j' |XG 10l/I'-i XI 


166.106 






24. TOO 




•,.-OB£S 






• ■ 


I.'2S 




- 






S(«ICONOU<' - " 


134.009 




- -. -.1 







81 - 



PHOTOGRAPHIC 
ELECTRONIC CO 
"AGNETIC TAPE 



ri»G £OuIPw£N 



IRCRAFT p»bts ano ACCESS NEC 

IRCRAFT ENGINES 

1AED-.1NG AIRCRAFT 

hOTOGHAPnIC fll" 

• RTS and ACCESSORIES N£C 



ELECTOONIC COMPUTING £OuIP«ENT 

ENVIRONMENTAL CHAMBERS 
ELECTRONIC COMPUTING £OuIP«£NT 
PETROLEUM ANO PETROLEUM PRODUCT 
ONS EQUIPMENT 



«ICATIO 



•:.- 



ELECTRONIC COMPUTING EQUIPMENT 

ELECTRONIC COMPUTING EOulP"ENT 

ELECTOONIC computing EOuIPmeni 

ELECTRONIC COMPUTING EOuIP«E"T 

ELECTRONIC COMPUTING £OuIP"£NT 

ELECTRONIC COMPuiING EOuIPmenT 

optical elements 
electronic computing eouipment 
electronic computing eouipȣnt 
integrateo circuifs 
electronic computing equipment 
electronic computing eouip"£nt 
electronic computing equipment 
electronic computing eouip»ent 
ElEC'ROnic capacitors 
electronic computing eouip-ent 

ELECTRONIC computing EOuIPMENT 

integrated circuits 
integrated circuits 
electronic computing equipment 
electronic computing e3uip"£nt 
electronic computing eoulp«ent 
electronic computing eouipment 
electronic computing eou|p«£nt 

ELECTRONIC computing EOUIPMENT 

electronic computing e0u!p«£nt 
photographic film and Plates 
electronic computing eouip«ent 

ELECTRONIC COMPUTING EOu1Pm£NT 

electronic computing eouipment 
electronic conpuuno equipment 
electronic computing equipment 
electronic computing equipment 
electronic computing eou!p«ent 
electronic computing eouipment 
ectronic computing £ou|p«£nt 
ectronic computing £©llpn£nt 

ectronic computing equipment 
ectronic computing equipment 

ELECTRONIC COMPUTING EOuIPm£NT 
ELECTRONIC COMPUTING EOuIPMENT 
ELECTRONIC COMPUTING EQUIPMENT 
magnetic RECORDERS ano parts 
magnetic RECORDERS and parts 

CONOUCTOB mfg. EOuIPMENT 
ELECTRONIC COMPUTING EQUIPMENT 
LUBRICANTS 

MAGNETIC RECOHOERS ano parts 
ELECTRONIC TEST INSTRUMENTS 
ELECTRONIC COMPUTING EOuIPMENT 

SISTORS 
ELECTRONIC COMPUTING EOuIPMENT 

£R|A 

ELECTRONIC COMPUTING EQUIPMENT 
CAM£3»s 

tic recoroers ano parts 
electronic computing eouipment 

ronic computing eouipment 
electronic EQUIPMENT and Parts 

LUBRICANTS 



E - I EC 



tees 



EACTOR PARTS 
AFT fARTS i. ACCESSORIES 

Electronic computing equipment 
electronic computing equipment 

MAGNETIC tape 

Electronic computing eOuIpment 
Electronic computing equipment 

SEMICONDUCTOR mfg. EOuIPMENT 

bacteria 

Electronic computing equipment 

testing eouipment 

Electronic computing £OuiPMtNi 



2.980 


NETHfRLANOS 


S.102 






PAKISTAN 


25.000 


PHILIPPINES 


10.000 


PHILIPPINES 


1*2 


PORTUGAL 


1*2 




00.000 


SINGAPOMt 


60.000 


SInGaPOhE 




SINGAPORE 


60.000 


SINGAPORE 


so. ooo 


SINGAPORE 


60.000 


SINGAPORE 


3.830 


SOMALIA 


t.2'8 


SOUTH AF-lCi 



15.225 


S.€D£N 


•2eo.«oo 


S.EDEN 




S.EDEN 


31.670 


S.EOEN 


2.837 


S.EDEN 


2.600 


S.EOEN 


2.607 


S.EDEN 


•00.000 


S.EOEN 


000.000 


S.EDEN 


6.061 


S.ITZERLANO 




S.ITZERLANO 


1 .700 


S.ITZERLANO 


5.121 


S.ITzE-lAnc 


2. 80S 


S.ITZERLANO 


1 .8TS 


S.ITZERLANO 


S61 


S.I TZERlanq 




S.ITZERLANO 


S.13S 


S.ITZERlano 


37.S31 


SWITZERLAND! 


21 .IAS 


S.lTZEtLANO 


28.171 


S.ITZE=LA-.0 


2S.8SS 


S.ITZfH^ASO 


88.200 


s.itze-^and 


2S0.OOO 


S.ITZERLANO 


2A.O00 


I. :~ :;--'■ 


31.021 


S.ITzeslano 


38.281 


S.ITZERlAnd 


38.281 


S.ITZERLANO 


38.281 


SWITZERLAND 


23.820 


S.I Tze>-l«no 


37.531 


S.ITZERLANO 


•1-281 


S.ITZEPlAND 


•1.281 


S.ITZEPLANO 


•1 .281 


S.ITZEO.ANO 


•1 .291 


SWITZERLAND 


31.050 


S.ITZErlanc 


38.281 


Switzerland 


•8. 385 


• 


2.548 


s.: rzESLAMO 


2«.05O 


S.ITze-lahO 



1C Chemicals 



ElECTROni 



•-. 



20.000 


TAl.AN 


8.050 


TAIWAN 


17.721 




52 


THAILANO 


S2.705 


TUR<E t 


1.005 


UNITE 


200.000 


UN 1 T f ; 


♦ .306 


UNITED aIngoom 


37.000 


unite: 


13.667 


UN|T£0 A1NGDOM 


1.568 


UNITEO AINGOOH 


50.000 


UNITED KINGOOM 


500.000 


UNITEO KInodlm 


000.000 


UNITED HINGDOM 


500.000 


UNITED A1N0OOM 


106. ••0 


UNlTfD AINGDJM 


20.250 


UNITED AINGOOM 


2.673 


UNITEO "INGCOM 


1 1 .700 


UNITEO AINGOOM 


12.025 


UNITEO AINGDOM 


10 


■ INGOCM 


2».000 


UNITEO AINGOOM 


6. 356 


UNITEO AlNGOOw 


8.605 


UNHEO AINCOLM 




UNITED AlNGOLM 


200. 000 


UNITED «In„o-m 



EIPOIT LICENSES APPtOVEO 


April 


It, 


197 6 




P09. 2 


— 






-wlJs:^ 


e ;?;-• 




ELECTRONIC COMPUTING EOuIPMENT 


5 




2.703 


UNITED 





.ELECTRONIC COMPUTING E«UlPM£NT 10.000.000 

PARTS AND ACCESSORIES N£c 2.670 

ELECTRONIC COMPUTING EQUIPMENT 336.2*5 

TECHNICAL DATA - B N«NO.N «ALUE 

I (DESIGN ANO ENGINEERING I 

(TECHNICAL DATA - HNANO.N VALUE 

(DESIGN • ENGINEERING I 

TECHNICAL DATA - B NKN0.N VA L U£ 
(DESIGN I £NGIN££0|NO | 

TECHNICAL DATA - oNKNO.N value (DESICN 4, ENCISEERINC) 

TECHNICAL DATA - ONANO.N VALUE 

(MAINTENANCE A OPERATION I 

Chemical PREPARATIONS (TEST1NC ) W278 

AIRCRAFT ENGINES 250.000 

(REPAIR OF NONMILITART AIRCRAFT 1 

REEXPORT LICENSES APPROvEO ■ 
ELECTRONIC COMPUTING EOuIPMENT $ A. 250 



electronic computing eouipment 
electronic computing eouipment 
Electronic computing equipment 
Electronic computing equipment 



MAGNET 



"•: 



BELGIUM 
REEXPORT 

BELGIUM - 



S.ITZERLANO 
SAUDI ARA8IA 
REEXPORT FRO 
SWITZERLAND 
SAU01 ARABIA 
REEXPORT FRO 
S.nztPLA.; 
SAU01 ARABIA 



-■'.' 



•:■- 



electronic computing eouip»e« 
electronic computing eouipme* 
magnetic recoroers and parts 



REEIPO-T 


FROM 


BELGIUM 








REEXPORT 


FRO" 


UNITED « 


INGOOM 


POL ANO 




REEXPORT 


FROM 




NGD-" 


Poland 




REEXPORT 


FROM 


UNITED A 


;ngoOm 


POLAND 




REEXPORT 


FROM 


UNITED « 




CZECmOSl 


3vA«lA 



electronic computing equipment 

metalwor«|ng machine tools 

magnetic tape 

electronic computing eouipment 

Electronic computing eouipment 

oscilloscopes 



FED REP OF GER"A 

REEXPORT FRO" 

FED REP wF G£R"A 

USSR 

REEXPORT FROM 



ussr -: 

SwITZE'RLANO - ; / 
USSR -5/ 



- 82 



Appendix F. Denial and Probation Orders (sample page) 



Name and Address 


Effective 
Dste 


Expiration 
Date* 


Export Privilege* Affected 


Federal Register 
Citation 


Letiers. Andre 
29 rue Victor Hugo 
PuUaujt. France, and 
13 rue des Sablona 
Mareil-Marly. Franc* 


7/13/71 


7/13/76 


General and validated licenses, all commodities, 
any destination, also exports to Canada. 


36 F.R. 13048 
7/13/71 


Levee and Co. 

Room 604. Fukoku Bid*. 

Uchlsaiwai-Cho 

2-Chome. Chiyoda-Ku 

Tokyo. Japan, and 

10 Queen"* Road Central. Hong Kong 


1/81/6* 


Duration 


General and validated licenses, all commodities, 
any destination, also exports to Canada. 


21 F.R. 776-777 
2/3/6* 


Lewo. Joseph, also known aa 
Joe Lewo, Joseph Jeuda Levoi. 
Joseph Levo. and Joseph Liebow 

1400 Pine Avenue West 

Montreal. Quebec. Canada 


12/12/68 


Indefinite 


General and validated licenses, all commodities, 
any destination, also exports to Canada. 


33 F.R. 18626 
12/13/68 


Li. Hsiu Kuang 

(alias S K. Lai) 
Room 604. Fukoku Bldg. 
Uchisaiwai-Cho 
2-Cbome. Chiyocta-Ku 
Tokyo. Japan, and 
60 Queen"* Road Central. Hong Kong 


1/31/66 


Duration 


Central and validated licenses, all commodities, 
any destination, also exports to Canada. 


21 F.R. 776-T77 
2/3/66 


Liebermann, Bernard 

(alias Robert Govaerts) 
66 Rue du Rocher 
Paris 8, France, and 
60 Rue Ravensteln 
Brussels. Belgium 


8/ 8/49 


Duration 


General and validated licenses, all commodltiea, 
any destination, also exports to Canada. 


14 F.R. 4918 
8/9/49 


Lljnxaad. D.. N.V. Transport 

en Handelmaatschappij 
68 Coolsingel. Boursgebouw 
Rotterdam. Netherlands 


10/27/66 


(On probation 
from 10/27/66 
for duration) 




20 F.R. 822* 
11/2/66 


Lincaloy Bahia Trading Co. 

Grand Cayman 

Grand Cayman Islands. B.W.I. 


12/23/71 


Until 

further 

notice 


General and validated licenses, all commodities, 
any destination, also exports to Canada. 
(Party related to Robinson. Lincoln, et al.. 
which see.) 


36 F.R. 26172 
12/29/71 

37 F.R. 6970 
3/23/72 


Lincaloy Co. 

Lincaloy Inc. 

West Haxleton. Pa., and 

Aguadilla. Puerto Rico, and 

Grand Cayman 

Grand Cayman Islands. B.W.I. 


12/23/71 


Until 

further 

notice 


General and validated licenses, all commodities, 
any destination, also exports to Canada. 


36 F.R. 26172 
12/29/71 

37 F.R. 6970 

3/23/72 


Lincedt Part* 
Aguadilla. Puerto Rico 


12/23/71 


Until 

further 

notice 


General and validated licenses, all commodities, 
any destination, also exports to Canada. 
(Party related to Robinson. Lincoln, et al., 
which see.) 


36 F.R. 26172 
12/29/71 

37 F.R. 6970 
3/23/72 


Ling Dynamic Systems Ltd. 
Baldock Road 
Royston. Hertfordshire 
England 


2/2/78 


6/1/76 

(On probation 
from 6/2/73 
to 6/1/76) 




38 F.R. 4001 
2/9/73 


Ling Electronica Division. Altec 

Corp. 
1616 South Manchester Ave. 
Anaheim. Call/. 82808 


2/2/73 


2/1/76 

(On probation 
from 2/2/78 
to 2/1/76) 




38 F.R. 4002 
2/9/73 


Lippig. F. , doing buiinrai as 

Elimex 
ApostclnkloaUr 21-26 

A'eat Germany 


7/ 9/68 


Duration 


General and validated licenses, all commodities), 
any destination, also export* to Canada. (Party 
related to Fleschner. Richard, which se«.) 


23 F R 6310 
7/12/68 



- 83 - 

Appendix G. Sources 

Export Administration Act of 1969, as amended (50. U.S.C. App . 2401-2413). 

Export Administration Regulations (15 C.F.R. 368-399.2). 

Federal register, v. 26, no. 100, May 25, 1961, p. 4487 (E.O. 10945); 

v. 41, no. 43, March 3, 1976, p. 9085 (E.O. 11907); v. 41, no. 55, 
March 19, 1976, p. 11592 (U.S. Dept . of Commerce Order No. 46-2, 
Admt . 1 ) . 

Statements before the Subcommittee on International Trade and Commerce, 

Committee on International Relations, U.S. House of Representatives, 
presented by: 

Downey, Arthur T. , Deputy Assistant Secretary of Commerce for 

East-West Trade, U.S. Department of Commerce, March 15, 1976; 

Fasick, J. Kenneth, Director, International Division, U.S. General 
Accounting Office, March 11, 1976; 

Glitman, Maynard W. , Deputy Assistant Secretary of State for Inter- 
national Trade Policy, U.S. Department of State, March 15, 1976; 

Shields, Roger E. , Deputy Assistant Secretary, International Economic 
Affairs, U.S. Department of Defense, March 15, 1976. 

U.S. Department of Commerce. The United States role in East-West trade; 
problems and prospects. Washington, August 1975. 

U.S. General Accounting Office. The Government's role in East-West trade- 
problems and issues; summary statement of report to Congress. 
Washington, February 4, 1976. 84 p. 

Invaluable assistance was rendered in the preparation of this paper by 
the following officials of the Office of Export Administration, 
U.S. Department of Commerce: 

Lawrence J. Brady, Deputy Director, OEA 
Converse Hettinger, Director, Short Supply Division 
Charles C. Swanson, Director, Operations Division 
Edward P. Walinsky, Director, Policy Planning Division 
John A. Shyburg, Acting Director, Compliance Division 
Eugene W. Oakes , Compliance Division 

o 



UNIVERSITY OF FLORIDA 
II 



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